Indiabulls Real Estate Guilty Of Profiteering Rs 6.46 Crore, To Refund Homebuyers: NAA

The profiteered amount has to be passed on to homebuyers within three months

The DGAP found Indiabulls benefitted from additional ITC after the introduction of the GST, and over Rs 6.46 crore should be passed on to the buyers in the project

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The National Anti-profiteering Authority (NAA) has found Indiabulls Real Estate guilty of not passing on over Rs 6.46 crore input tax credit benefits to homebuyers by a commensurate reduction in prices post roll-out of the Goods and Services Tax (GST).

Based on a case filed by a homebuyer that Indiabulls Real Estate has not passed on ITC benefits in project Sierra-Vizag, situated in Visakhapatnam, the Directorate General of Anti Profiteering (DGAP) investigated the case and found the builder guilty of profiteering.

The DGAP found that the real estate firm benefitted from additional ITC after the introduction of the Goods and Services Tax between July 1, 2017-March 31, 2019, and over Rs 6.46 crore should be passed on to the buyers in the project.

“The Authority finds that the Respondent has profiteered by an amount of Rs 6,46,06,227 for the project 'Sierra Vizag' during the period of investigation.

"The amount that has been profiteered by the respondent from the homebuyers in the said project shall be refunded by him, along with interest at the rate of 18 per cent thereon, from the date when the above amount was profiteered by him till the date of such payment,” NAA said in its order dated June 24.

The profiteered amount has to be passed on to homebuyers within three months.

Meanwhile, the two-day GST Council meeting started for the first time after the introduction of the new indirect tax regime on Tuesday. The meeting will be chaired by Union Finance Minister Nirmala Sitharaman and will comprise representatives of all states and UTs. It will also be the first meeting in the current calendar year. The meeting of the Council after a gap of six months is scheduled at Hotel Hyatt at 11 am in Chandigarh.