The profiteering watchdog, National Anti-Profiteering Authority (NAA) dismissed the application alleging profiteering against Signature Global.
An application has been filed under Rule 128 of the CGST Rules, 2017 alleging profiteering by the Respondent, Signature Global (India) Pvt. Ltd. in respect of the supply of purchase of Flat in Respondent’s real estate project “The Millenia 37D” situated at Sector-37D, Gurugram, Haryana.
The DGAP has reported that it has been alleged that the Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in the price of his residential unit and that GST had been charged on the amounts due to him against payments to be made by the applicant to the Respondent.
The NAA headed by the Chairman, Dr. B.N.Sharma noted that the Applicant could have availed the ITC benefit only if the project was under execution before coming in to force of the GST as the Respondent would have been eligible to avail ITC on the purchase of goods and services after July 1, 2017 on which he was not entitled to do so before the above date.
“Since there is no basis for comparison of ITC available before and after July 1, 2017, the Respondent was not required to recalibrate the price of the flat due to the additional benefit of ITC. Hence, the allegations of the Applicant made on this behalf are incorrect and therefore, the same cannot be accepted,” the Authority said.
Therefore, the NAA while dismissing the application held that since there had been no reduction in the rate of tax or benefit of additional ITC to the Respondent the provisions of Section 171 are not attracted in the present case and the allegation of profiteering is not established against the Respondent.
Subscribe Taxscan Premium to view the Judgment
