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Profiteering From GST Lands Real Estate Firm In Soup, Directed To Refund Rs 8.2 Crore To Home Buyers
GST is the new goods and services tax regime in India. (photo by Arun Sharma/Hindustan Times via Getty Images)
The National Anti-Profiteering Authority (NAPA) has directed Gurugram-based Pyramid Infratech to refund more than Rs 8.2 crore to 2,476 flat owners as the company failed to pass on the benefits it availed under the Goods and Services Tax (GST) regime. The order came about subsequent to a complaint by 109 flat owners about profiteering by the company in relation to two projects being undertaken by it.
The order observed that “it is evident from the above that the Respondent (Pyramid Infratech) has denied benefit of ITC to the buyers of the flat being constructed by him in contravention of the provisions of Section 171(1) of the CGST Act, 2017 and has thus realized more price from them than he was entitled to collect and has also compelled them to pay more GST than that they were required to pay by issuing incorrect invoices and hence he has committed an offence under Section 122 (1) (i) of the CGST Act, 2017 and therefore, he is liable for imposition of penalty.”
The NAPA is an institutional mechanism under the GST regime constituted with a view to prevent unfair profit making and ensure that sellers pass on the benefits they enjoy under the new indirect tax regime to the buyers.
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