Profiteering through Input Tax Credit denial to Consumers
Builder denied benefit of ITC to buyers of flats and shops: NAA
Smt. Shubhra Vipin Gajbhiye Vs Pyramid Arcades Pvt. Ltd (National Anti-Profiteering Authority)
It is established from the perusal of the above facts that the Respondent has benefited from the additional ITC to the extent of 4.52% of the turnover during the period from July, 2017 to December, 2018 and hence the provisions of Section 171 of the CGST Act, 2017 have been contravened by the Respondent as he has not passed on the above benefit to his customers and has profiteered an amount of Rs. 51,12,928/- inclusive of GST @ 12% on the base profiteered amount of Rs. 45,65,114/-.
Builder reversed ITC before receipt of CC/OC to deny ITC benefit to home buyers
Gautam Semwal Vs Revital Reality Pvt. Ltd. (National Anti-Profiteering Authority)
NAA observed that the reversal of the ITC has been effected by the Respondent even before occupancy certification/ completion certificate was issued by the competent authority.
There would be many cases like above where the provision of Input Tax Credit is being used for profiteering.
It is high time government amended GST Act to remove the provision of Input Tax Credit. more