GSTAT Principal Bench Orders Nahar Homes LLP to Refund Profiteered GST Amount with Interest to 13 Buyers in Anti-Profiteering Case

In a significant anti-profiteering decision, the Goods and Services Tax Appellate Tribunal (GSTAT) Principal Bench, New Delhi, has ordered Nahar Homes LLP to refund the balance profiteered amount of Rs. 5,80,280, along with applicable interest, to 13 eligible homebuyers in its ‘F-Residences’ project. The Tribunal, comprising Justice Mayank Kumar Jain and Sh. Anil Kumar Gupta, delivered its order on 20 February 2026, accepting the findings of the Director General of Anti-Profiteering (DGAP) and disposing of the case accordingly.

The proceedings originated from a complaint by a homebuyer, Ajay Rattan, alleging that Nahar Homes LLP failed to pass on the benefit of increased input tax credit (ITC) following the introduction of GST on 1 July 2017, as mandated by Section 171 of the Central Goods and Services Tax Act, 2017. The DGAP initially investigated the matter and, after a remand from the Competition Commission of India based on a Delhi High Court judgment, submitted a fresh report on 3 June 2025.

The DGAP’s investigation revealed that, prior to GST, the respondent could only avail credit of service tax on input services, whereas post-GST, ITC was available on all inputs and input services. The investigation focused on units booked before GST implementation, as units sold after the occupancy certificate or booked post-GST with explicit ITC benefit clauses were outside the purview of anti-profiteering provisions.

The DGAP calculated that the ratio of ITC to purchase value increased from 5.08% pre-GST to 12.28% post-GST, resulting in a 7.20% increase in ITC benefit. This translated to a total benefit of Rs. 4,65,07,296 plus GST of Rs. 55,80,876, totaling Rs. 5,20,88,172, which should have been passed on to eligible homebuyers. The respondent claimed to have passed on Rs. 6,63,41,543 to 253 pre-GST buyers, supported by customer ledgers and a CA certificate.

Upon verification, the DGAP found that for 240 buyers, the benefit passed on exceeded the required amount. However, for 13 buyers, only Rs. 21,84,437 had been passed on against a required Rs. 27,64,716, leaving a shortfall of Rs. 5,80,280. The respondent, represented by a Chartered Accountant, accepted the DGAP’s findings and agreed to pay the balance amount with interest to the affected buyers.

The Tribunal, noting the respondent’s acceptance and willingness to comply, directed that the balance profiteered amount be refunded to the 13 buyers within 30 days, with a compliance report to be submitted to the jurisdictional CGST/SGST Commissioner and the DGAP within two months. The Tribunal also addressed the penalty provisions under Section 171(3A) of the CGST Act, noting that no penalty would be leviable if the profiteered amount is deposited within thirty days of the order.

The GSTAT Principal Bench thus accepted the DGAP’s investigation report in full and disposed of the anti-profiteering proceedings, ensuring compliance with GST anti-profiteering provisions and protection of homebuyer interests in the real estate sector.