GSTAT Directs Builder To Return Over ₹20 Lakhs Benefit To Diya Greencity Homebuyers With Interest

In a recent order, a Division Bench comprising, Shri. Mayank Kumar Jain (Judicial Member) and Shri. Anil Kumar Gupta (Technical Member) verified that benefit of about ₹13 crores to 1177 eligible homebuyers had been passed on but “No benefit has been passed to 21 homebuyers”

For context, the complainant, a homebuyer purchased a flat from the Respondent-Builder at its Diya Greencity Project, Ghaziabad. Vide Notification No. 03/2019, effective April 01 2019, the GST rate on affordable housing projects was reduced to 1% (without input tax credit) from the previous effective 8%. Under the revised rate structure, Ongoing projects under central/state housing schemes could continue at 8% with ITC or switch to 1%. The Builder opted for benefit of full Input Tax Credit (ITC) in terms of the Notification No. 03/2019.

When Anti-Profiteering cases were transferred from National Anti-Profiteering Authority to Competition Commission of India (CCI). CCI having Smt. Ranveet Kaur at the helm, on the complaint filed by a homebuyer directed the Directorate General of Anti-Profiteering (DGAP) to re-investigate under Rule 133(4) on these points:

• Whether homebuyer received ITC benefit via settlement.
• Whether some flats qualify under Affordable Housing Scheme (8% GST).
• Impact of cancelled flats on profiteering calculation.
• Fresh verification of ITC benefit passed to buyers.

Before the CCI, DGAP clarified that by way of pre & post GST Input Tax Credit (ITC) ratio the Net profiteering yet to be passed on was ₹12.23 crore to 1,333 homebuyers. It was submitted that Builder had benefitted additional ITC to the tune of 5.43% [5.98% (-) 0.55%] of the turnover. This benefit was required to be passed on to the respective recipients in terms of Section 171 of the CGST Act, 2017.

On the other hand, the Builder challenged the methodology adopted by DGAP as also claimed that settlement was reached with some homebuyers. Upon verification by DGAP, it was found that benefit to all the homebuyers had not been passed on.

Thereafter, the re-investigation report dated November 07, 2025 as directed by the CCI indicated that upon implementation of the GST total benefit of ITC accrued to Respondent was ₹10,49,43,145 plus GST @ 8% i.e. ₹83,95,452 totalling to ₹11,33,38,597. Out of this amount, Builder had passed on ITC benefit of ₹13,19,64,459/- to 1177 eligible buyers.

Now, GSTAT while hearing the matter recorded an undertaking from the Builder to the effect that GST rate reduction benefit would be passed on to the 21 homebuyers. It was stated by the Builder that to avoid further litigation, it unconditionally accepted the findings, observations and conclusions contained in the report of DGAP without any objection.

Accordingly, GSTAT closed the anti-profiteering matter by accepting the final liability determined by DGAP and undertaking given by the Builder.

Case Detail: DGAP vs. Diya Greencity Private Limited, Project-Diya Greencity

Case No.: NAPA/91/PB/2025

For Appellant: Additional Assistant Director Suneel Kumar assisted by Anurag Gupta, Inspector

For Respondent: Chartered Accountant D.K Goel

Click here to read the GSTAT Order.

Click here to read the CCI Order.