Commensurate price reduction is mandatory for input tax credit benefits; free construction work cannot satisfy anti-profiteering obligations.
Case-Laws
GST
Additional input tax credit benefits must be passed to each eligible homebuyer through a commensurate reduction in price. The Tribunal found that, although benefits were passed to four buyers, the balance remained unpaid to two and constituted contravention of the anti-profiteering requirement. Free additional construction work could not replace the mandated price reduction, regardless of its value or the buyers' acknowledgement. Interest was payable from collection of the higher amount until actual payment because recipients were deprived of their monetary entitlement. Penalty applied to the continuing contravention after the penal provision took effect, subject to the statutory exemption where the profiteered amount is deposited within the prescribed period.
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