Facts:
Mrs. Hermeet Kaur Bakshi (“the applicant”) alleged that M/s. Conscient Infrastructure (P.) Ltd. (“the respondent”) had charged 12% GST on the demand raise on April 17, 2018 i.e after January 25, 2018, when the GST rate was reduced from 12% to 8% in case of affordable housing projects vide Notification No. 01/2018 Central Tax (Rate) dated January 25, 2018 (“Notification No. 01/2018”) and also that benefit of ITC has not been passed on by the respondent w.r.t reduction in price.
Issue Involved:
Whether the benefit of reduction in the rate of tax was passed on by the Respondent w.e.f January 25, 2018, when the GST rate was reduced from 12% to 8% vide Notification No. 01/2018?
Respondent contentions:
The development project “Habitate-78” was being constructed and developed under Affordable Housing Scheme of the Government, Haryana and the flats were allotted to the successful allottees by way of draw of lots, which took under the presence of government officials. Further the project was launched after the implementation of GST, and there was no sale of booking of the flats of the above projects in the pre-GST regime and hence, the question of price revision did not rise.
Further, the applicant allotted the flats in the month of November 2017 and the applicant was under an obligation to purchase the flat at the price offered by the respondent for the first time under the GST regime. The flat sold by the respondent had no price history of pre-GST regime. Therefore, the anti-profiteering provision would not apply to the present case.
Held:
The Hon’ble National Anti-Profiteering Authority vide Case No. 33 of 2019 dated May 24, 2019 observed the applicant’s demand letter dated April 16, 2018 which quotes the total value Rs.3,21,124/- and the taxable value as Rs. 2,14,083/- (2/3rd of the total value of Rs. 3,21,124/-) separately for calculating the tax liability and the respondent had charged GST @ 12% on the taxable value which was 2/3rd of the total value.
Therefore, the effective rate of GST was 8% on the total value of Rs. 3,21,124/-, which clearly shows that the Respondent had reduced the GST rate from 12% to 8% w.e.f January 25, 2018, in terms of Notification No. 01/2018. Hence, the respondent had not contravened the provisions of Section 171 of the CGST Act, 2017.
Citation: [2019] 105 taxmann.com 343 (NAA)