GST Rate Cut Not Passed On in Cinema Tickets, Profiteering Confirmed by GSTAT

DGAP Vs Bhavya Construction Pvt Ltd. (GSTAT) The proceedings arose from a report submitted by the Director General of Anti-Profiteering to examine whether the respondent had violated Section 171 of the Central Goods and Services Tax Act, 2017 by failing to pass on the benefit of reduction in GST rates on cinema admission tickets. With effect from 01.01.2019, GST on tickets priced at ₹101 or more was reduced from 28% to 18%, and on tickets priced at ₹100 or less from 18% to 12%. The DGAP alleged that despite this reduction, the respondent did not reduce ticket prices and instead increased b...