Gowdsons Realtek guilty of profiteering Rs 19.72 crore: GST NAA
The Goods and Services Tax (GST) Anti-profiteering Authority has convicted Gowdans Realtech, a Ghaziabad-based company in Uttar Pradesh, of Rs 19.72 crore. the corporate didn’t transfer the advantage of lower rates of tax to homebuyers.
The National Anti-profiteering Authority (NAA), while justifying the quantity of profiteering, has asked the Directorate General of Anti-Profiteering (DGAP) to look at 33 other projects of Gudsons Realtek to determine whether the tax on raw materials utilized in construction justice flat buyers are given the advantage of lower rates.
Following the complaint that the corporate profited during the sale of flats within the ’16th Park View’ project of Yamuna Expressway (Greater Noida), the DGAP launched an investigation into the matter.
The applicant had alleged that before the GST came into force on Dominion Day, 2017, the Gowdsons had taken a GST of 12 percent from it. The flat buyer claimed that he paid the flat fully on or before June 30, 2017. But the realty company raised the flat price from Rs 28.78 lakh to Rs 30.68 lakh, demanding a 12 percent GST on the payment made before the new tax regime was implemented.
DGAP in its report found that the corporate didn’t give an input decrease (ITC) of Rs 19,72,09,203 to 2,349 flat buyers by not reducing the first price by 5.77 percent. Gowdans Realtech has also claimed that it’s transferred a profit of Rs 28,22,65,749 to 908 flat buyers.
The NAA said in its order that Gowdans Realtek benefited 5.77 percent of the business from the extra input decrease from July 2017 to March 2019, which it didn’t expire to buyers. The team is looking towards things and taking strict action against loose loopholes.