GSTAT Orders Diya Greencity to Pass Remaining GST ITC Benefits to Homebuyers

The Goods and Services Tax Appellate Tribunal (GSTAT) has ordered Diya Greencity Pvt. Ltd to pass on the remaining GST input tax credit (ITC) benefits to homebuyers. This decision comes after the builder accepted the findings of the Director General of Anti-Profiteering (DGAP).

The appeal was filed by the DGAP against Diya Greencity Pvt. Ltd in relation to its real estate project, “Diya Greencity.” The DGAP alleged that the builder had not passed on the GST ITC benefits to homebuyers as required by law. The DGAP found that the total ITC benefit accrued to the builder was ₹11.33 crore. Out of this amount, benefits totaling ₹13.19 crore had already been passed on to 1,177 eligible buyers.

However, the anti-profiteering officer noted that ITC of ₹20.21 lakh had not been passed on to 21 homebuyers. During the proceedings before the GSTAT, the builder, represented by its counsel, filed written submissions unconditionally accepting the findings, observations, and conclusions of the DGAP report. The builder agreed to pass on the remaining benefit to the affected homebuyers.

The bench of GSTAT acknowledged the builder's acceptance of the DGAP report and their willingness to comply with the directive. The tribunal concluded that there was no dispute for adjudication and directed the respondent to pass on the remaining GST ITC benefit of ₹20.21 lakh to the 21 homebuyers, along with applicable interest. The proceedings were concluded accordingly, ensuring that the homebuyers receive the benefits they are entitled to.

This ruling highlights the importance of transparency and compliance in the real estate sector, particularly when it comes to the distribution of GST benefits. It serves as a reminder to builders and developers to adhere to the regulations set forth by the DGAP to ensure fair treatment of homebuyers and maintain the integrity of the real estate market.