Hyderabad GST Tribunal Orders Anuhar Homes to Refund Rs.95 Lakh to Homebuyers
HYDERABAD: The Goods and Services Tax Appellate Tribunal (GSTAT) has upheld anti-profiteering findings against Hyderabad-based Anuhar Homes Pvt Ltd. The tribunal directed the developer to refund Rs.95.13 lakh, along with 18% annual interest, to eligible homebuyers within three months for not passing on the benefit of input tax credit (ITC) after the implementation of the Goods and Services Tax (GST), as reported by TOI.
The order, issued on July 30 by A. Venu Prasad, Member (Technical) of the GST Appellate Tribunal’s Principal Bench in New Delhi, stated that the developer retained the tax benefit instead of reducing the prices of flats. The tribunal, however, did not impose any penalty on the company.
The refund amount of Rs.95.13 lakh includes the 12%GSTcollected on the ITC benefit that should have been passed on to buyers through a reduction in flat prices.
Complaint Linked to Morning Raaga Project
The case began after R. Nithya, who purchased a flat in Anuhar Homes’ Morning Raaga project in 2017, filed a complaint.
The complainant alleged that the developer charged 12% GST but did not pass on the benefit of input tax credit by reducing the price of the flat. Anuhar Homes, based in Jubilee Hills, was the respondent in the case, while landowner N. Rami Reddy was named as a corespondent.
DGAP Found 10.6% Additional ITC Benefit
The Director General of Anti-Profiteering (DGAP) investigated the case for the period between July 2017 and August 2018.
The investigation found that the developer did not receive input tax credit under the pre-GST tax regime. After GST came into effect, the company became eligible for an additional ITC benefit of 10.6%.
The DGAP calculated that Anuhar Homes failed to pass on benefits worth Rs.95,13,829 to homebuyers. Instead of reducing flat prices, the developer retained the tax savings.
After reviewing the findings, the GST Appellate Tribunal upheld the DGAP’s conclusions. It directed Anuhar Homes to distribute Rs.95.13 lakh, along with 18% annual interest, to all eligible homebuyers within three months.
