GST: NAA finds Navkar Associates Guilty of denying additional ITC to Homebuyers [Read Order]

The National Anti-Profiteering Authority (NAA) found that Navkar Associates was guilty of denying additional ITC to homebuyers.

The has alleged that the Respondent, Navkar Associates had not passed on the benefit of additional Input Tax Credit (ITC) to the Applicant who had purchased Flat in his Project “Navkar Darshan”, as per the provisions of Section 171 (1) of the CGST Act, 2017.

The DGAP reported that the Respondent had denied the benefit of ITC to the Applicant and other buyers amounting to Rs. 5,83,593/-, pertaining to the period w.e.f. July 1, 2017, to December 31, 2018, and had thus indulged in profiteering and violation of Section 171(1).

The NAA headed by the Chairman Dr. B.N. Shrama held that the Respondent had not passed on the benefit of additional Input Tax Credit (ITC) to the above Applicant as well as other homebuyers who had purchased them in his Project “Navkar Darshan” for the period from 01.07.2017 to 31.12.2018 and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017.

However, the Authority did not impose the penalty on the respondent and stated that no penalty provisions were in existence between the period w.e.f. 01.07.2017 to 31.12.2018 when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.

“Accordingly, the notice dated 15.01.2020 issued to the Respondent for imposition of penalty under Section 177 (3A) is hereby withdrawn and the present penalty proceedings launched against him are accordingly dropped,” the NAA said.