Big boost for homebuyers, action launched against Delhi builder Eldeco

A committee of the National Anti-Profiteering Authority (NAA) has decided to take action against Eldeco, a well known Delhi-based builder, for not passing on the benefit of Goods and Services Tax (GST) to consumers. The case filed by a Delhi resident is likely to have implications for homebuyers all over the country.

Homebuyers have also filed complaints to the NAA about similar violations against other builders including Sikka Group, another realtor of the National Capital Region. NAA is likely to hear their complaints soon.

NAA, which works under the administrative control of the finance ministry, has a mandate to ensure that the benefits of lower taxes under the new tax regime are shared with consumers.

According to the sources, investigations are soon likely to begin in the case involving Delhi resident Varun Goyal who booked a flat for Rs 96 lakh in Eldeco County, Sonepat.

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“The builder charged me GST on the ready-to-move-in flat,” says the complainant, demanding refund of the tax. More and more homebuyers are reportedly approaching the NAA against the builders demanding benefits under the new tax regime.

As per section 171 of the GST Act, any reduction in the rate of tax on supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by the way of commensurate reduction in prices.

By Anjul Tomar, DNA Money