Moneycontrol
Get App
Last Updated : | Source: PTI

GST NAA finds Emaar MGF guilty of profiteering, asks to refund Rs 13.35 crore to 1,239 homebuyers

It has also asked the realty firm to reduce the prices of flats in Emerald Floors Premier commensurate with the benefit of ITC received.

PTI
Representative Image
Representative Image

GST anti-profiteering authority has found real estate firm Emaar MGF guilty of profiteering of Rs 13.35 crore and directed it to return the amount to 1,239 homebuyers with 18 percent interest. The National Anti Profiteering Authority (NAA) has ruled that the realty firm has benefited from additional input tax credit (ITC), which is 11.90 percent of turnover between July 2017 and March 2019.

Based on a complaint filed by a home buyer in Emerald Floor Premier project and an investigation report of Directorate General of Anti Profiteeeing (DGAP), the NAA in its ruling said Emaar MGF has Profiteered an amount of Rs 13.35 crore.

"The Respondent (Emaar MGF) is directed for pass on an amount of Rs 13,35,79,636 and the amount of Rs 1,04,734 ..... along with interest @18 percent annum from the dates from which the above amount was collected by him from them (homebuyers of Emerald Floors Premier Project) till the payment is made, within a period of 3 months from the date of passing this order," the NAA said.

Close

It has also asked the realty firm to reduce the prices of flats in Emerald Floors Premier commensurate with the benefit of ITC received.

The NAA has also said that a show cause notice would be issued to Emaar MGF, directing him to explain why penalty under GST rules should not be imposed on the firm.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.


Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!

First Published on May 21, 2020 07:59 pm
Sections
Follow us on