The Competition Commission Of India (CCI) has dropped anti-profiteering proceedings against real-estate projects initiated post-GST.
BACKGROUND
The erstwhile National Anti-Profiteering Authority (NAA) in the case of M/s Prasu Infrabuild Pvt. Ltd, had directed the DGAP to investigate profiteering in relation to projects other than the project ” SKA Green Arch” being constructed by the respondent under single GST Registration under Rule 133(5) of the Rules
The DGAP submitted an investigation report to the NAA for determination whether the Respondent was liable to pass on the benefit of ITC in respect of all the other Projects/Blocks to the buyers, or not, as per the provisions of Section 171(1) of the CGST Act, 2017.
The investigation by the DGAP, which included a detailed review of the company’s operations, revealed that Prasu Infrabuild was not involved in any other project apart from “SKA Green Arch”. The findings were corroborated by the UP Real Estate Regulatory Authority (RERA) and the Deputy Commissioner of State Tax, U.P. Therefore, the DGAP concluded that the provision in Section 171(1) of the CGST Act, 2017 was not applicable in this case.
RULING
The CCI has held that the Respondent is not executing any other project other than the project “SKA Green Arch” under the same GSTIN and the same has been verified by the DGAP by visiting the website of UP RERA. From the website of UP RERA, it has been observed that the Respondent has obtained single registration of two phases of the project “SKA Green Arch” and no other project than the above project is being executed by him under the above GSTIN.
The commission held that does not fall under the ambit of Anti-Profiteering provisions of Section 171 of the CGST Act, 2017 as the Respondent is not executing any project other than the project “SKA Green Arch” which has already been investigated and profiteered amount has also been determined by the NAA vide its Order No. 72/2022 dated 13.09.2022. Accordingly, the proceedings initiated against the Respondent under Rule 133 (5) of the CGST Rules, 2017 are hereby dropped.
Case Title: DGAP V/s Prasu Infrabuild Pvt. Ltd.
Citation: 10/2023