Profiteering provisions for realty projects – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/tp-news/profiteering-provisions-for-realty-projects/article65325173.ece

Gavel on the podium. Good copy space.

Gavel on the podium. Good copy space. | Photo Credit: Marilyn Nieves

NAA says projects getting completion certificate post introduction of GST will not attract profiteering charges

The National Anti-profiteering Authority (NAA) says a real estate project launched and getting completion certificate post introduction of GST will not face profiteering charges.

This is the first ruling after a gap of over a year due to lack of quorum.

Disposing an application filed against Mumbai-based Lodha Developers (Respondent), NAA observed, “On this basis, it would emerge that the Respondents (Lodha Developers) had neither benefited from additional ITC nor had there been a reduction in the tax rate in the post-GST period and therefore it does not qualify to be a case of profiteering.”

Further, it made clear that the allegation that the said developer has not passed on the benefit of ITC in this case in not found sustainable.

Mumbai-based Darshan Joshi filed an application stating that the respondents had resorted to profiteering in respect of the supply of the construction services related to a flat booked in a project, located at Parel.

ITC benefits

He also alleged that the developer had not passed on the benefit of ITC by way of commensurate reduction the price of the flat.

After probing, the Director General of Anti-Profiteering (DGAP) noted that the booking and receipt of payments had taken place post introduction of GST. Therefore, there was no pre-GST tax rate or ITC structure. Accordingly, DGAP initially concluded that provisions relayed with anti-profiteering will not be applicable in the present case.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s