Builder Passed ITC Benefit to Buyers – No Profiteering | GSTAT

Case Details: DGAP vs. Axis Infratech LLP - [2026] 184 taxmann.com 78 (GSTAT-NEW DELHI)

Judiciary and Counsel Details

• Anil Kumar Gupta, Technical Member

Facts of the Case

The Directorate General of Anti-Profiteering (DGAP) conducted an investigation and identified 11 buyers who had booked units prior to the issuance of the completion certificate and were therefore eligible for an incremental input tax credit (ITC) benefit. Applying the area-based methodology, it determined an incremental ITC ratio and computed the profiteered amount on the post-GST purchase value. However, examination of records revealed that ITC benefits had already been passed to the eligible buyers. It was further noted that a minor shortfall for one buyer was subsequently transferred via NEFT and confirmed by the buyer. The matter was accordingly placed before the GST Appellate Authority (GSTAT).

GSTAT Held

The GSTAT held that, since the entire incremental ITC benefit had been passed on to all eligible buyers and the nominal shortfall had also been rectified, the statutory obligation to pass the benefit was fully discharged. It was observed that the DGAP report, along with documentary evidence and buyer confirmations, established compliance with the anti-profiteering provisions. Accordingly, it was held that the requirement under Section 171 of the CGST Act and the Delhi GST Act had been satisfied, and the investigation report was accepted, concluding that no further action was warranted under Rule 129 of the CGST Rules.

List of Cases Referred to

• Reckitt Benckiser India (P.) Ltd. v. Union of India [2024] 158 taxmann.com 675/82 GSTL 344/102 GST 495 (Delhi) (para 3).