Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the additional ITC of 8.37% of the turnover should have resulted in the commensurate reduction in the base price as well as cum-tax price. Therefore, in terms of Section 171 of the Act, the benefit of such additional ITC was required to be passed on to the recipients. The Authority observed that the Respondent has profiteered by Rs. 4,75,87,468/- during the period of investigation i.e. 01.07.2017 to 31.10.2020. The above amount that has been profiteered by the Respondent from his home buyers/customers/recipients of supply in the above said Project shall be refunded by him, along with interest @18% thereon.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to   pass on the profiteered amount along with the interest @ 18% per annum, within a period of 3 months. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and the period of investigation is from 01.07.2017 to 31.10.2020, therefore. the Respondent is liable for imposition of penalty under the provisions of the above Section for the amount profiteered from 01.01.2020 onwards. Accordingly, notice be issued to him to explain why penalty should not be imposed on him.