In a significant decision directed towards the homeowners, National Anti Profiteering Authority has pointed it’s fingers to a real estate developer Pyramid Infratech for not passing input tax credit benefit and also ordered refund of the amount together with an appreciable interest of around 18%.
NAPA said in an order on Wednesday that the Commissioner state tax Haryana is directed to monitor this order under the supervision of the Director General Anti Profiteering by ensuring that the amount profiteers by the respondent as ordered by the authority is passed on to all its buyers. The analysis is this that there will be an impact on real estate projects for the mentioned purpose. It will be where the builder may not have passed on the benefit of reduction in overall incidence of tax due to input tax credit, given the fact that there has been an implementation of goods and services tax GST in July of the last year, that is in 2017.
The authority further observed that it is not possible for the developer to appropriate the benefit as it is a concession given by the government from its very own tax revenue collected. It is focussed primarily to reduce the prices charged from the vulnerable sections of the society that cannot afford high value apartments. NAPA held that Pyramid Infratech shall reduce the price to be realised from all its buyers and not just the appellants. This will be in proportion to the benefit of tax credit received by them.
Courtesy/By: Subhalagna Choudhury
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25 Sep 2018
