GSTAT Delhi Orders Ahmedabad East Infra LLP To Refund ₹1.20 Crore To Homebuyers In Anti-Profiteering Case

The GST Appellate Tribunal (GSTAT) directed Ahmedabad East Infrastructure LLP to refund ₹1.20 crore to homebuyers after finding that input tax credit (ITC) benefits under GST were not passed on, along with interest at 18 percent from the date of collection of the higher amount.

The Principal Bench, comprising Technical Member A. Venu Prasad, by order dated April 2, 2026, confirmed the findings of the Directorate General of Anti-Profiteering and held the developer in violation of the anti-profiteering provisions under Section 171 of the CGST Act.

The Tribunal observed:

“the Respondent derived the benefit of additional input tax credit after the introduction of GST and such benefit has to be passed on to the homebuyers in terms of Section 171 of the CGST Act.”

The investigation showed that the ITC ratio increased by 1.31 percent post-GST, resulting in profiteering of ₹1,20,72,320. The developer accepted the computation and agreed to refund the amount.

The tribunal directed a refund with 18 percent interest under Rule 133(3)(b), noting that the obligation to pass on benefits arises at the time of supply. Penalty under Section 171(3A) was also held leviable, subject to the statutory proviso.