GSTAT Dismisses Profiteering Case After Full ITC Benefit Passed

Case Details: DG Anti Profiteering, Director General of Anti- Profiteering, DGAP vs. Realgem Buildtech (P.) Ltd. [2026] 184 taxmann.com 551 (GSTAT-NEW DELHI)

Judiciary and Counsel Details

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

Facts of the Case

The applicant alleged that the assessee, engaged in development of the project, had not passed on the benefit of additional ITC arising post-GST implementation. Upon the Committee’s reference, the matter was investigated by the Director General of Anti-Profiteering (DGAP). It was contended that the entire benefit had been passed on to the buyers. The DGAP verified that the respondent had passed on amounts exceeding the determined liability to the concerned buyers, and in subsequent proceedings, the respondent paid the remaining balance, along with applicable interest, to the remaining buyers. The matter was accordingly placed before the Goods and Services Tax Appellate Authority (GSTAT).

GSTAT Held

The GSTAT held that the respondent had duly complied with the provisions of Section 171 of the CGST Act by passing on the entire benefit of additional ITC to the eligible buyers. It accepted the DGAP’s findings that the profiteering amount, including interest, had been fully disbursed to all concerned recipients. It was observed that the verification conducted established complete compliance with the statutory requirement of passing on commensurate benefit, and no shortfall remained outstanding. It was held that in light of such compliance, no contravention of anti-profiteering provisions subsisted against the respondent. Accordingly, the DGAP report was accepted and the proceedings were disposed of.