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    Indiabulls Real Estate asked to return over Rs 6 crore to homebuyers after profiteering charge

    Indiabulls Real Estate asked to return over Rs 6 crore to homebuyers after profiteering charge

    Indiabulls Real Estate asked to return over Rs 6 crore to homebuyers after profiteering charge
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    By CNBCTV18.com  IST (Updated)

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    The guilty developer has been directed by the NAA to pass on the benefit of ITC within a period of 3 months from the date of order (June 24).

    The National Anti-profiteering Authority (NAA) has found real estate developer Indiabulls Real Estate guilty of not passing on over Rs 6.46 crore input tax credit benefits to homebuyers after the introduction of goods and services tax (GST).
    The concerned project, named Sierra-Vizag, is situated in Visakhapatnam. As per the NAA order, the project has around 550 owners.
    The Directorate General of Anti Profiteering (DGAP) undertook a detailed investigation and found the developer guilty of profiteering after a homebuyer filed a complaint.
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    The DGAP found that the real estate firm benefitted after the introduction of the GST between July 1, 2017, and March 31, 2019, by not passing on over Rs 6.46 crore to the buyers.
    The guilty developer has been directed by the NAA to pass on the benefit of input tax credit within a period of three months from the date of order, i.e. June 24.
    The company will have to pay the profiteering amount of Rs. 6,46,06,227 and 18 percent interest from the date of receiving of advance from the homebuyer till the date of passing the benefit of the input tax credit.
    The NAA, in its order, stated that if Indiabulls Real Estate failed to do so, the monetary amount would be recovered as per the provisions of the CGST Act, 2017.
    The order also stated that the "input tax credit pertaining to the unsold units might not fall within the ambit of this investigation and the respondent (Indiabulls) was required to recalibrate the selling price of such units to be sold to the prospective buyers by considering the proportionate benefit of additional input tax credit available to him post-GST".
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