NEW DELHI: The anti-profiteering authority has found Haryana-based real estate developer S3 Infra Reality guilty of not passing GST rate cut benefit totalling Rs 1.48 crore to its buyers of residential and commercial properties.
The authority has also asked the realty firm to pass on Rs 57.76 lakh to the buyers of ‘Auric City Homes’ project as the company has already admitted lapses and passed on Rs 90.84 lakh to the purchasers.
The investigation by the Directorate General of Anti Profiteering has found that in respect of 651 residential units, the realty firm has profiteered over Rs 1.45 crore.
With regard to 13 commercial units sold in the said project, the company profiteered to the tune of Rs 3.01 lakh.
“Accordingly, out of the total profiteered amount of Rs 1,48,60,874, an amount of Rs 90,84,264 has already been passed on… The balance amount of over Rs 57,76,610 is to be passed on to the identified buyers…,” the National Anti-Profiteering Authority (NAA) said in an order.
The ruling was passed on a complaint filed before the Haryana State Screening Committee on Anti-Profiteering on April 4, 2018. The applicant had alleged that the realty firm did not pass on the input tax credit benefit to the buyers by way of commensurate reduction in prices after Goods and Services Tax (GST) roll out.
The GST rate during the investigation period July 1, 2017 to Janaury 24, 2018, was 12 per cent and was reduced to 8 per cent for January 25, 2018 to August 31, 2018.
“It is evident…that the respondent (S3 Infra Reality) has denied benefit of ITC to the buyers of the flats being constructed by him… and has thus realised more price from them than he was entitied to collect and has also compelled them to pay more GST than that they were required to pay by issuing incorrect tax invoices and hence he has committed an offence .. and is liable for imposition of penalty,” the NAA said.
The authority has also issued a show cause notice to the realty developer directing him to explain why penalty should not be imposed on him.
Source:Press Trust of India