Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the Respondent was required to pay Tax/GST @ 5% without taking/availing the benefit of ITC. Thus, the Respondent was not eligible to avail the input tax credit w.e.f. 01.04.2019 and Section 171 of the Act was not attracted. The Authority observed that the Respondent has profiteered by an amount of Rs. 6,46,06,227/- for the Project “Sierra-Virag” during the period of investigation i.e. 01.07.2017 to 31.03.2019. Penalty provisions have come in to force w.e.f. 01.01.2020, by inserting Section 171 (3A). Since, no penalty provisions were in existence between the period from 01.07.2017 to 31.03.2019 when the Respondent had violated the provisions of Section 171 (1), the Authority holds that the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.

Held that:- The Hon’ble Anti-Profiteering Authority directed the jurisdictional Commissioners of CGST/SGST to ensure compliance of this order. They are directed to send a Report to this Authority and the DGAP in this regard, within four months.