Banking & FinanceFinanceFinanceGSTInFocus

National Anti-Profiteering Authority Initiated Hearings Against Adani M2K for GST Mismanagement

Sharing is caring!

The National Anti-profiteering Authority has initiated hearings against real estate companies including Adani Group’s real estate venture, Adani M2K, for not passing on the benefit of a reduction in the goods and services tax to home buyers, two senior government officials quoted in media.

Adani M2K is a tie up between Adani Realty and Delhi-based M2K group to develop housing projects in Gurugram.

To revive housing sales, the GST Council in February had reduced the goods and services tax rate on under-construction residential properties in the general category to 5% from 12%, and on affordable houses to 1% from 8%, without the benefit of input tax credit. The new rate structure for residential projects is applicable on constructions initiated from Apr 1, 2019.

“There is a case against some realty projects of Adani M2K for not transferring the input tax credit to end customers. The total amount is around 20-40 mln rupees,” one of the officials told Cogencis.

When contacted, the official spokesperson of the company refused to comment on the development.

“The company is contesting the interim finding of the Directorate General of Anti-profiteering and has already paid 12.5 mln rupees as per the interim award,” a company source said.

The anti-profiteering law under goods and services tax allows end users to file complaints if manufacturers and traders do not pass on the benefits of reduced rates or input tax credit to them.

The Directorate General of Anti-profiteering has been mandated by the GST Council to investigate cases where these benefits are not passed on to the end user.

According to procedure, after the inquiries are concluded, the National Anti-profiteering Authority will pass an order that may include directing a cut in prices and a refund of benefits not passed on to consumers.

The anti-profiteering body, whose term was to end in 2019, was given a two-year extension by the GST Council in June.

SMEStreet Desk

SMEStreet is fast growing platform dedicated to entrepreneurs from small and medium sized businesses (SMEs). Committed to facilitate Knowledge & Networking for Business Growth, SMEStreet offers value added content which shows the actual voice of Indian MSMEs.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: