Rise Builders Ltd. launched a housing project in July 2024. All prices were inclusive of taxes. In October 2024, the GST rate on affordable housing was reduced from 8% to 1%, but the builder continued to collect the same

Answer 4A(iii) Anti-Profiteering Measures: i) Assess the liability of Rise Builders Ltd: Section 171 of CGST Act mandates that reduction in tax rates must be passed by way of commensurate reduction in prices. Whether the pricing is inclusive or exclusive is immaterial. Legal Position: Section 171 (1): Benefit must be passed. Rule 126-133: Procedure for determination. Notification No. 23/2022-CT made CCI the new authority (w.e.f. 01.12.2022). Judicial Support: In Signature Builders Pvt. Ltd. (2019), National Anti-Profiteering Authority held that inclusive pricing does not override anti-profiteering duties. ii) What are the remedies for the buyers? Remedies: Buyer can receive refund with 18% interest. In case buyer is untraceable, the amount goes to the Consumer Welfare Fund. Penalties and even cancellation of registration under Rule 133 may apply. Conclusion: Rise Builders cannot escape liability by using the inclusive pricing model. Adjustments in invoices and refund of excess amount are necessary.