GSTAT Clears Prateek Infraprojects of Anti-Profiteering Allegations in Housing Project Case

The Goods and Services Tax Appellate Tribunal (GSTAT), Principal Bench, New Delhi, has upheld the DGAP investigation report and ruled that Prateek Infraprojects India Pvt. Ltd. did not violate anti-profiteering provisions under Section 171 of the CGST Act, 2017.

The appeal was filed by the Director General of Anti-Profiteering (DGAP) following complaints related to the housing project “Prateek Edifice” in Noida, alleging that the developer failed to pass on GST input tax credit (ITC) benefits to homebuyers.

After multiple rounds of reinvestigation pursuant to directions of the Delhi High Court and earlier authorities, DGAP’s final report dated 4 June 2025 found that the ratio of ITC to purchase value had actually declined from 6.46% in the pre-GST period to 2.70% post-GST. This indicated that no additional ITC benefit had accrued to the developer after GST implementation.

Accepting the DGAP’s findings, the GSTAT held that there was no profiteering and no contravention of Section 171. The appeal was accordingly disposed of as a closure report, bringing the long-running anti-profiteering proceedings to an end.