GSTAT Confirms Anti-Profiteering Demand Against Real Estate Company, Directs Refund Of ₹17.75 Lakh

The Goods and Services Tax Appellate Tribunal (GSTAT) on 23 March confirmed an anti-profiteering demand against Duville Estates Pvt. Ltd, a real estate developer, directed it to pay Rs. 17,75,622 along with applicable interest to homebuyers.

A Single Member Bench comprising Judicial Member Justice Mayank Kumar Jain accepting the findings of the Director General of Anti-Profiteering (DGAP), recorded:

“the report of the DGAP dated 18.12.2024 is accordingly accepted.”

The DGAP had investigated whether the benefit of input tax credit (ITC) was passed on to buyers as required under GST law.

Accepting the DGAP's computation, the Tribunal noted that out of 109 homebuyers, only 34 had confirmed receipt of ITC benefits, while others either did not respond or could not be contacted.

During the hearing, Duville Estates' Chartered Accountant submitted that the company was willing to accept the DGAP's report to bring the litigation to an end.

Accordingly, it directed that the profiteered amount of Rs. 17,75,622 be returned to eligible homebuyers along with interest.