No Profiteering on Government-Price-Controlled Flats: GSTAT Restricts Anti-Profiteering Computation to HIG Units Only, Reduces DGAP's ₹13.35 Crore Demand to ₹70.58 Lakhs in Bengal Emami Swan Court Case

The GST Appellate Tribunal (National Anti-Profiteering Bench, New Delhi) has delivered a landmark ruling in the real estate anti-profiteering space, holding that where LIG and MIG flat prices are statutorily capped by a state government notification limiting recovery to direct costs only, no profiteering can be attributed for those categories. The ruling in DGAP v. Bengal Emami Housing Ltd. (NAPA/141/PB/2025, decided 02.09.2026) slashes the DGAP's original profiteering determination of Rs. 13,35,51,188 to just Rs. 70,58,488 — a reduction of over 94%.

The project in question, "Swan Court" in Kolkata, is a joint venture between Bengal Emami Housing Ltd. and the West Bengal Housing Board. It comprises three categories — ASHA (LIG), Abhilasha (MIG) and Akankhya (HIG) — totalling 440 units. The West Bengal Housing Department's Notification dated 17.08.2015 prescribes maximum sale rates for LIG and MIG categories, stipulating that only direct costs and no overhead or administrative costs may be charged. The respondent argued that since the pricing notification leaves no discretion to load overheads, taxes or administrative costs into LIG/MIG sale prices, no embedded tax component existed for passing on GST benefits.

The Tribunal accepted this argument, finding that the pricing mechanism for LIG and MIG was "materially different" from HIG. The DGAP had relied on its own earlier ruling in AMB Cinemas LLP (Hyderabad) where government-regulated cinema ticket prices were held subject to anti-profiteering. However, the Tribunal distinguished AMB Cinemas on the ground that in that case, a committee headed by the Chief Secretary was monitoring and regularly revising prices, whereas the West Bengal notification was a one-time price fixation with no material showing subsequent revision. The Tribunal also allowed cost-escalation of Rs. 5,08,25,698 based on a Chartered Accountant's certificate, accepted the respondent's evidence of ITC benefit already passed on to 101 HIG buyers through credit notes and price reductions, and restricted profiteering to 325 HIG buyers at Rs. 70,58,488 with 18% interest. A 10% penalty under Section 171(3A) was imposed but made waivable if payment is made within thirty days.

2026-juristway.com-1188-GSTAT(New Delhi)-GST  |  GSTAT (National Anti-Profiteering Bench)  |  NAPA/141/PB/2025  |  02.09.2026