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Anti profiteering complaint

23 April 2018

We are a group of homebuyers in under construction property. Our builder is not giving input tax credit under GST and causing us to pay higher taxes. We need CA consultant who can help in filing anti profiteering complaint under GST

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195725 Points)
Replied 24 April 2018

To ensure that manufacturers, developers and service providers pass on the benefit to the final customer, the Government has included an anti-profiteering clause in the GST bill under section 171 of GST law. This clause clearly states that it is mandatory to pass on the benefit tax reduction due to input tax credit to the final customer. If any developer chooses not to do so, then there are penal consequences, to be decided by Anti-profiteering Authority.

Key Points about the Anti-profiteering Provisions

Refer: page 4 of Input-Tax-Credit-The-Real-Game-Changer-For-Real-Estate.

Besides the aforesaid guidelines, there is no concrete mechanism to compel developers to pass the benefits.

While these guidelines serve as a deterrent, But considering the track record of real estate developers, it remains to be seen how many actually comply with the law in an honest manner.

Sadly, if they choose not to, it is the buyers who has to suffer and go through 8-11 months long time to get the justice.

From buyer’s perspective, how do they ensure that 100% benefit is passed on to them? Where they can verify the input tax credit details verified for their individual projects and calculate the benefit available to them. At present, while their liabilities in terms of higher GST on subsequent instalments are fixed, their benefits are not fixed or guaranteed.