BENGALURU: Investigations by the Directorate General of Anti-Profteering have revealed that builder Mantri Castles Private Limited have not passed on the benefit of input tax credit totalling over Rs 22.2 crore to 539 home buyers for its project ‘Mantri Serenity’. The authority has asked the builder to furnish an explanation in this regard before October 24.
This followed an application filed before the authority by a couple Santosh Patil and C Pratibha, who sought a refund of the Input Tax Credit under GST paid by them for their flat in Mantri Serenity on Kanakapura Main Road. Under Section 171 of the Central Goods and Services Tax Act, 2017, it is incumbent on the builder to reduce the basic price for buyers, so that they benefit from the additional input tax credit.
The couple had booked a 3BHK flat, R-1903, in Block 5 of the residential project in the pre-GST period, for which the agreement was entered into on December 31, 2014. Patil told TNIE, “The cost of our flat is Rs 1 crore and 10 lakh. The GST that needs to be reimbursed to us is for Rs 1 crore and 1 lakh, which we have already paid in two instaalments -- one in 2017 and another in 2018.”
On the basis of their complaint, the authority conducted an investigation on the project between July 1, 2017, and May 31, 2022. The authority in its report, an order copy of which is in the possession of TNIE, has concluded: “The Noticee has been found to have profiteered an amount of Rs 22,22,52,221, which includes the 12% GST amount over the basic price.
The above said computation of profiteering is in respect of 539 home buyers in whose case positive demands have been raised or advances received.” It added that the applicants (the couple) had to be paid Rs 2,34,203.”Representatives of Mantri Serenity did not respond to calls or messages from TNIE in this connection.