Profiteering through Input Tax Credit denial to Consumers
CASE 1
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/-.
CASE 2
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.
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/-.
CASE 2
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.
Viewed by 1945
The business community are unable to submit the tax returns. Government should examine their plight and find solutions.
Feb 25
Until stern action is taken and the profiteered amount is recovered with at least cent percent fine, these dishonest builders will continue their evil acts of deceiving the customers as well as the government. It is high time now that the concerned government agencies wake up and act quickly against this category of greedy people (builders & developers).
Jan 14
Builders are thriving on black money and are also frequent offenders under GST. Old ways are not dying and will take some more time to settle to the new ways of business
Jan 13
Certainly in case of real estate business, IPT credit system must be removed as there are many anamolies. Further, in this business, not every deal is transparent resulting in huge loss to exchequer in terms of stamp duty and registration fees besides GST which need to be addressed and tap the loopholes. Concept of guideline or ready reckoner value must be looked into across the nation and make it known through public domain. Agreement value, at any cast, must not be less than these values. Invariably, these values are much less than market price. Same is the case with bullion and currency markets as cash settlement is rampant and volume is so high and not at all accounted. So parallel economy is thriving. PM alone cannot fight against corruption, people must be sincere and honest to give him full support by their deeds. Then India will become powerful nation and stand tall in the universe.
Jan 11
Builders are known for tax evasion and manipulation . Home buyers usually suffer due to blind faith in the builder and ignorance.
Jan 10
