Pyramid Infratech told to pass on input tax benefit to homebuyers

NEW DELHI: In a significant decision for homeowners, National Anti-profiteering Authority (NAPA) has pulled up real estate developer Pyramid Infratech for not passing on input tax credit benefits to homebuyers, and ordered refund of the amount it profiteered along with 18% interest.“...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 profiteered by the respondent as ordered by the authority is passed on to all the buyers,” NAPA said in its order on Wednesday.This will have implication on other real estate projects where the builder may not have passed on the benefit of reduction in overall incidence of tax due to input tax credit, with the implementation of goods and services tax (GST) in July last year.The authority observed that the developer cannot appropriate the benefit as this is a concession given by the government from its own tax revenue to reduce the prices charged from the vulnerable section of society that cannot afford high value apartments.NAPA held that the Gurgaon-based developer shall reduce the price to be realised from all buyers — and not just appellants — in commensurate with the benefit of input tax credit received by him.The authority directed the builder to refund any amount collected in excess along with 18% interest, and show cause as to why the penalty in relation to anti-profiteering should not be levied.

from Economic Times https://ift.tt/2xpMaPb