Case Details: DGAP vs. Pyramid Infratech Pvt. Ltd. (2026) 39 Centax 113 (Tri.-GST-Delhi)
Judiciary and Counsel Details
- Shri A. Venu Prasad, Member (T)
Facts of the Case
An applicant booked a residential flat in a project of a developer at Gurugram and alleged failure to pass on the Input Tax Credit (ITC) benefit by way of commensurate reduction in price under the anti-profiteering provisions. The matter was referred by the Standing Committee, pursuant to which an investigation was conducted by the Director General of Anti-Profiteering (DGAP). The DGAP reported that the project had commenced wholly after the implementation of GST and that no additional ITC benefit had arisen in the project. The matter was accordingly placed before the GST Appellate Tribunal (GSTAT).
GSTAT Held
The GSTAT held that Section 171 of the CGST Act/Delhi GST Act applied only where a reduction in tax rate or an increase in ITC resulted in a comparative benefit, particularly in projects spanning pre-GST and post-GST periods. It was observed that construction and supply in the project occurred entirely after the implementation of GST. Therefore, no comparative additional ITC benefit arose for passing on. Accordingly, the tribunal accepted the DGAP report and found no contravention of Section 171, ibid. in the matter.
List of Notifications Cited
- Notification No. 3/2019-Central Tax, dated 29-3-2019
