Builder Directed to Pay Profiteering Amount to Homebuyers | GSTAT

Case Details: DGAP vs. Kolte Patil Developers Ltd. - [2026] 182 taxmann.com 633 (GSTAT-NEW DELHI)

Judiciary and Counsel Details

• Mayank Kumar Jain, Judicial Member & Anil Kumar Gupta, Technical Member

Facts of the Case

The assessee, a builder, was alleged to have engaged in profiteering under the anti-profiteering provisions in the real estate sector, and the Director General of Anti-Profiteering (DGAP) computed the amount of profiteering at Rs. 67,02,147. The assessee submitted that it was ready to pay the said amount as determined by DGAP and requested that a period of three months be granted to make the payment, on the ground that the disbursement was to be made to numerous homebuyers. An undertaking was furnished by the assessee agreeing to pay the computed amount to eligible homebuyers. The matter was accordingly placed before the Goods and Services Tax Appellate Tribunal (GSTAT).

GSTAT Held

The GSTAT held that in view of the undertaking furnished by the assessee, the report of DGAP was liable to be accepted. It was observed that the quantified profiteering amount, as determined by DGAP, was not disputed and was agreed to be paid to eligible homebuyers. Referring to Section 171 and Rule 133(3) of the CGST Rules, the GSTAT concluded that the assessee was liable to deposit the profiteered amount along with applicable interest. Accordingly, the assessee was directed to pay the determined amount to the eligible homebuyers in terms of the statutory provisions.