Major crackdown on 33 projects of Gaursons Realtech as the firm found guilty of undue profiteering
New Delhi: Gaursons Realtech has not been passing lower tax benefits of about Rs 19.7 crore to the consumers government body has found. The GST anti profiteering authority NAA has held the realty firm guilty and ordered a major crackdown on as many as 33 other projects of the company for similar investigation. NAA or National Anti Profiteering Authority has asked DGAP to look into whether the real estate company has passed on the benefits of lower taxes on raw material to the customers in the projects, according to a news report by newswire PTI.
DGAP or Directorate General of Anti Profiteering initiated the investigation after an application was moved before it to look into whether the company had passed on the benefits of lower taxes in its project '16th Park View' in Greater Noida. The applicant, a home buyer, had moved the application saying that he was charged 12 percent GST on the amount paid by him to the realty firm even before the GST regime came into existence in July 2017. He had made the entire payment by June 2017 for the flat he had purchased, yet the GST demand was raised by the builder on him.
The investigation by DGAP found that the realty firm has not been passing the input tax credit (ITC) benefit to its customers and a total of Rs 19.7 crore should have bene passed on to the consumers.
NAA ruled that the realty firm has taken undue advantage by way of additional ITC to the tune of 5.77 percent of its revenues in the July 2017-March 2019 period and has not been passing on the benefit to the customers. In this way, the company is guilty of making undue profits of Rs 19.7 crore, NAA said.