Dr. Sanjiv Agarwal, FCA, FCS
The GST law contains a provision on anti-profiteering measure as a deterrent for trade and industry to enjoy unjust enrichment in terms of profit arising out of implementation of Goods and Services Tax in India, i.e., anti-profiteering measure would obligate the businesses to pass on the cost benefit arising out of GST implementation to their customers.
The Authority constituted by Central Government has powers to impose a penalty in case it finds that the price being charged has not been reduced consequent to reduction in rate of tax or allowance of input tax credit.
During the two years of initial transition into GST regime, Anti-Profiteering Authority (NAA) has the mandate to ask businesses that have not passed on full benefits of reduced tax burden to consumers to make up for such benefit, with interest.
During the year 2018, the NAA has passed 28 orders against the complaints referred to it. Following is the gist of NAA Orders issued in 2018. It may be noted that out of 28 Orders, Anti-profiteering could not be established in 18 cases.
| S. No. | Date | Complaint Against | Issue | Anti-Profiteering | Citations | |
| 1. | 27.03.2018 | M/s Vrandavaneshwree Automotive Pvt. Ltd. | Price difference on sale of car in GST regime booked in pre-GST regime | Not established | (2018) 13 GSTL 415 (NAA)
(2018) 67 GST 429 (NAA) (2018) 92 taxmann.com 360 (NAA) (2018) 4 TMI 1377 (NAA) |
|
| 2. | 04.05.2018 | M/s KRBL Ltd | Levy of GST @5% on branded rice in GST regime | Not established | (2018) 13 GSTL 412 (NAA)
(2018) 67 GST 574 (NAA) (2018) 93 taxmann.com 149 (NAA) (2018) 5 TMI 1760 (NAA) |
|
| 3. | 31.05.2018 | M/s Schindler India Pvt. Ltd., Mumbai | Purchase of lift before and after GST, GST charged on excise duty | Not established | (2018) 94 taxmann.com 163 (NAA)
(2018) 6 TMI 687 (NAA) (2018) 17 GSTL 621 (NAA) |
|
| 4. | 18.07.2018 | M/s Flipkart Internet Pvt. Ltd., Bangalore | Discount withdrawn on sale of Godrej almirah on Flipkart | Not established | (2018) 68 GST 443 (NAA)
(2018) 95 taxmann.com 221 (NAA) (2018) 7 TMI 1490 (NAA) (2018) 17 GSTL 623 (NAA) |
|
| 5. | 07.09.2018 | M/s Sharma Trading Company | Rate of Vaseline reduced from 28% to 18%, but supplier charged 28% | Upheld | (2018) 70 GST 156 (NAA)
(2018) 97 taxmann.com 157 (NAA) (2018) 9 TMI 625 (NAA) |
|
| 6. | 18.09.2018 | M/s Pyramid Infratech Pvt. Ltd. | ITC benefit on construction not passed on | Upheld | (2018) 70 GST 174 (NAA)
(2018) 97 taxmann.com 379 (NAA) (2018) 9 TMI 1108 (NAA) (2018) 19 GSTL 65 (NAA) |
|
| 7. | 25.09.2018 | M/s Lifestyle International Pvt. Ltd. | Rate on cosmetics reduced from 28% to 18% but MRP includes GST @28% | Upheld | (2018) 69 GST 786 (NAA)
(2018) 97 taxmann.com 601 (NAA) (2018) 9 TMI 1640 (NAA) (2018) 19 GSTL 92 (NAA) |
|
| 8. | 27.09.2018 | M/s N.P. Foods (Franchisee Subway India) | Prices increased due to ITC loss to restaurant, not amount to anti-profiteering | Not established | (2018) 70 GST 289 (NAA)
(2018) 97 taxmann.com 633 (NAA) (2018) 9 TMI 1763 (NAA) (2018) 17 GSTL 627 (NAA) |
|
| 9. | 08.10.2018 | M/s Kunj Lub Marketing Pvt. Ltd | Increase of base price of Maggie noodles on reduction of GST rate from 18% to 12% | Upheld | (2018) 70 GST 486 (NAA)
(2018) 98 taxmann.com 166 (NAA) (2018) 10 TMI 510 (NAA) (2018) 19 GSTL 84 (NAA) |
|
| 10. | 29.10.2018 | M/s Amway India Enterprise | No passing of GST benefit of GST rate reduction from 28% to 18% on various products | Not established for want of evidence | (2018) 70 GST 749 (NAA)
(2018) 98 taxmann.com 443 (NAA)
|
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| 11. | 29.10.2018 | M/s Yum Restaurant India Pvt. Ltd (KFC) | No passing of benefit of GST rate reduction from 18% to 5% on supplies of burgers | Not established for want of evidence | (2018) 70 GST 746 (NAA)
(2018) 98 taxmann.com 442 (NAA) (2018) 19 GSTL 90 (NAA)
|
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| 12. | 16.11.2018 | M/s Fabindia | Sale of Bathing Bar and instant Drink Powder on old MRP even after GST fixed @ 18% | Not established |
|
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| 13. | 16.11.2018 | M/s Hard Castle
(McDonald’s) |
No passing of benefit of GST rate reduction from 18% to 5% on supplies of burgers | Upheld | [2018] 99 taxmann.com 254 (NAA)
[2018]11 TMI 1073 (NAA) |
|
| 14. | 28.11.2018 | M/s Theco India Pvt. Ltd.
(Milling Machine Furnace) |
No passing of benefit of GST rate reduction and ITC on purchase of important machinery | Upheld | [2018] 100 taxmann.com 127 (NAA)
2018 (12) TMI 135 (NAA) |
|
| 15. | 06.12.2018 | M/s J.P. and Sons
(Johnson & Johnson Baby) |
Charge of same MRP after tax reduction | Upheld | [2018] 100 taxmann.com 204 (NAA)
(2018) 12 TMI 472 (NAA) |
|
| 16. | 07.12.2018 | M/s Harish Bakers & Confectioners Pvt. Ltd.
(Cadbury Dairy Milk Chocolate) |
No passing of benefit of GST rate reduction from 28% to 18 % on chocolates | Upheld | [2018] 100 taxmann.com 205 (NAA)
(2018) 12 TMI 473 (NAA)
|
|
| 17. | 17.12.2018 | M/s Landmark Automobiles Pvt. Ltd. (Honda Car) | Allegation of not passing of benefit of ITC on sale of Honda Car | Not established | [2018] 100 taxmann.com 326 (NAA)
(2018) 12 TMI 1002 – (NAA) |
|
| 18. | 17.12.2018 | M/s Zeba Distributors, Immanuel Stores (Eastern Meat Masala)
|
Allegation of not passing of benefit of GST rate reduction | Not established | (2018) 100 taxmann.com 327 (NAA)
(2018) 12 TMI 1001 (NAA)
|
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| 19. | 24.12.2018 | M/s Hindustan Unilever Ltd. | Not passing of benefit of tax rate reduction & not changing MRP of various FMCG products | Upheld | [2018] 100 taxmann.com 488 (NAA)
|
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| 20. | 24.12.2018 | M/s Asian Granito India Ltd. | Allegation of not passing of benefit of tax rate reduction on supply of tiles | Not established | [2018] 100 taxmann.com 490 (NAA)
(2018) 12 TMI 1401 (NAA)
|
|
| 21. | 24.12.2018 | M/s Peps Industries Pvt. Ltd. | Allegation of not passing of benefit of tax rate reduction on supply of mattresses. | Not established | [2018] 100 taxmann.com 486 (NAA)
(2018) 12 TMI 1402 (NAA) |
|
| 22. | 24.12.2018 | M/s Panasonic India Pvt. Ltd. | Allegation of not passing benefit of tax rate reduction on sale of Panasonic LED | Not established | [2018] 100 taxmann.com 487 (NAA)
(2018) 12 TMI 1403 (NAA) |
|
| 23. | 24.12.2018 | M/s Impact Clothing Co. | Allegation of profiteering on sale of garments | Not established | [2018] 100 taxmann.com 489 (NAA)
(2018) 12 TMI 1404 (NAA) |
|
| 24. | 27.12.2018 | M/s Raj & Company | Allegation of not passing benefit of tax rate reduction and not changing MRP of various FMCG products | Upheld | (2019) 1 TMI 22 (NAA)
[2018] 100 taxmann.com 502 (NAA) |
|
| 25. | 27.12.2018 | M/s Janson | Allegation of not passing benefit of tax rate reduction on supply of Lungi | Not established | (2018) 12 TMI 1600 (NAA)
(2018) 100 taxmann.com 506 (NAA) |
|
| 26. | 27.12.2018 | M/s Lorenzo Vitrified Tiles Pvt. Ltd. | Allegation of not passing benefit of tax rate reduction on supply of Mirror Series Tiles | Not established | (2018) 12 TMI 1601 (NAA)(2018) 100 taxmann.com 503 (NAA) | |
| 27. | 27.12.2018 | M/s Ahuja Radios | Allegation of not passing benefit of tax rate reduction on supply of Ceiling / wall speaker | Not established | (2018) 12 TMI 1602 (NAA)[2018] 100 taxmann.com 505 (NAA)
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| 28. | 27.12.2018 | M/s Asian Paints Ltd. | Allegation of not passing benefit of tax rate reduction on supply of paint product | Not established | (2019) 1 TMI 21 (NAA)(2018) 100 taxmann.com 504 (NAA)
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In 2019, there are already two dozen orders passed by the Authority till 31st March, 2019.
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