No Profiteering Without Increase in ITC Ratio | GSTAT

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No profiteering without ITC increase

Case Details: DG Anti Profiteering, Director General of Anti- Profiteering, DGAP vs. Prateek Infraprojects India (P.) Ltd. [2026] 183 taxmann.com 405 (GSTAT-NEW DELHI)

Judiciary and Counsel Details

  • Anil Kumar Gupta, Technical Member

Facts of the Case

The applicant filed a reference alleging profiteering in respect of construction services supplied during the period from 01-07-2017 to 29-10-2018. The DGAP (Director General of Anti-Profiteering) submitted an initial investigation report, which was remanded for re-investigation by the High Court. The re-investigation found that the ITC-to-purchase value ratio post-GST had not increased compared to the pre-GST period, and no additional ITC benefit had accrued. The matter was accordingly placed before the GSTAT (Goods and Services Tax Appellate Authority).

GSTAT Held

The GSTAT held that DGAP’s re-investigation report was acceptable. The Court observed that, as the ITC-to-purchase value ratio had not increased post-GST, no additional ITC benefit was realised. Consequently, allegations of profiteering under Section 171 of the CGST Act and Delhi GSTAT were unsustainable. Therefore, the court concluded that there was no contravention of Section 171 and decided the matter accordingly.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied