Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129. The DGAP reported that the provisions of Section 171 (1) of the Act, requiring that any reduction in rate of tax on any supply of goods or services or the benefit of ITC shall be passed on to the recipient by way of commensurate reduction in prices”, had been contravened by the Respondent in the present case. The Authority observed that the Respondent has denied benefit of ITC to the buyers of the flats and the shops being constructed by him in his Project JMD Imperial Suits/Suburbio-67 (Suburbio-1)in contravention of the provisions of Section 171 (1) and has committed an offence under Section 171 (3A). Section 171 (3A) has been inserted vide Section 112 of the Finance Act, 2019, and the same became operational w.e.f. 01.01.2020. As the period of investigation was 01.07.2017 to 31.05.2020, therefore, the Respondent is liable for imposition of penalty under the provisions of the above Section.

Held that:- The Hon’ble Anti-Profiteering Authority ordered that the profiteering amount of Rs. 33,35,330/- along with the interest @ 18% from the date of receiving of the profiteered amount from the homebuyer till the date of passing the benefit of ITC shall be paid/passed on by the Respondent within a period of 3 months. Further, notice be issued to the respondent to explain why penalty as prescribed under Section 171 (3A) should not be imposed on him.