Comments
National Anti-profiteering Authority (NAA) has upheld profiteering allegation against Mahindra Lifespaces for its Chennai-based Avadi project.
The allegation is that developer did not pass on the ITC (Input Tax Credit) benefit to its flat buyers in the said project and profiteered an amount of approximately ₹2.87 crore. This matter was re-investigated by Director General of Anti Profiteering (DGAP) following which NAA gave a ruling.
It held that developer contravened provisions of GST Law as it did not reduce the basic prices by 7.06 per cent due to additional benefit of ITC. It stated, “There is correlation between the ITC and the turnover as the benefit is directly linked to both.” Accordingly, ratio of ITC to turnover is required to be computed for both pre-GST and post-GST period. Based on the records, the Authority remarked that as prices of flats were fixed by Respondent (Developer) in pre-GST era, it was bound to pass the ITC available in the post-GST period and reduce the prices commensurately.
NAA rejected Respondent’s plea that the calculation of benefit shall be made only for those flat buyers who had purchased before GST introduction as buyers of post GST era had already received rate reduction benefit.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.