Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report. After going through the Report dated 27.02.2019, the Authority noted that the Report of the DGAP was not complete and needed to be revisited to rectify certain mistakes in the computation. The DGAP re-investigated the matter and submitted his Report and concluded that the additional input tax credit of 6.55% of the turnover should have resulted in a commensurate reduction in the base price as well as cum-tax-prices. Therefore, in terms of Section 171 the benefit of the aforesaid additional input tax credit is required to be passed on to the recipients. The Authority observed that the Respondent has benefited from the additional ITC during the period from 01.07.2017 to 31.03.2019 amounting Rs.4,74,88,840/- It has been verified by the DGAP that the Respondent has already passed on benefit amounting to Rs.1,88,56,367/- to 772 homebuyers. Hence the profiteered amount required to be returned/passed on by the Respondent is Rs, 2,86,32,474 (inclusive of GST @ 12%/ 8% on the base price).

Held that:- The Hon’ble Anti-Profiteering Authority held that the provisions of Section 171 (1) have been contravened by the Respondent and directed the Respondent to reduce the prices to be realized from the buyers of the flats of the above Project commensurate with the benefit of ITC received by him.