The Respondent’s submissions that the price of the product was not increased at the time of introduction of GST when the rate of tax was increased to 28% and hence the question of reducing the prices when the rate of tax was decreased from 28% to 18% does not arise is legally not sustainable in as much as Section 171 of the CGST Act, 2017 is very clear that the benefit of reduction in tax has to be necessarily passed on to the recipient by commensurately reducing the prices. Secondly the argument that the pre GST prices and the post reduction prices should have been compared will also not hold good as the DGAP has rightly taken into consideration the prices before the rate reduction and the prices after the reduction of tax rates to analyse and estimate the extent of benefit passed on to the recipient.
Shri Kumudchandra Atmaram Patel Vs M/s TTK Prestige Limited (National Anti-Profiteering Authority) Respondent had increased the base price of the product from Rs. 1,640.62 to Rs. 1,779.66, when the rate of tax was reduced from 28% to 18% with effect from 15.11.2017.Thus, by increasing the base price of the product, post-GST, the benefit of reduction […]
It is evident that there was no reduction in the rate of tax on supply of Courier Service after the implementation of GST, instead there was increase in the rate of tax from 15% in pre-GST regime to 18% in post-GST regime. The fact that the Respondent had increased his base price for providing courier service from Rs. 69.5/- to Rs. 80/- has no relevance in view of the fact that there has been no reduction in the rate of tax nor increased benefit on account of Input Tax Credit was available and hence the provisions of Section 171 of CGST Act, 2017 can not be invoked in this case.
It is apparent that the Respondent did not increase the per unit base price (excluding GST) of the product, which was Rs. 1028.07 in the pre-GST era. Further, it was reduced to Rs. 1021.73 in the post-GST era w.e.f 01.07.2017 and it also remained at Rs. 1021.73 when the GST rate was reduced from 28% to 18% w.e.f 15.11.2017 and hence, there was no increase in the per unit base price. Therefore, the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017. As such, we do not find any merit in the application filed by the above Applicants and the same is therefore dismissed.
The claim of the Respondent that he could not have reduced his prices after the tax reduction due to stiff competition from other exempted and compounding manufacturers, resistance from his customers, increase in the raw material and transportation costs and he was providing robust profit margins and discounts to his dealers cannot be accepted as the present proceedings are only conecerned with ascertaining whether the Respondent had passed on the benefit of rate reduction to his customers or not
Kerala Screening Committee on Anti-Profiteering Vs M/s Saint Gobain India Pvt. Ltd. (National Anti-Profiteering Authority) It is apparent from the perusal of the facts of the case and the invoices placed on record that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017 instead the rate of tax in […]
Kerala State Screening Committee on Anti-Profiteering Vs Ms. Rosata Vitrified Pvt. Ltd. (National Anti-Profiteering Authority) It was from the Invoices submitted clear that the base price of the product Vitrified Tiles Super Nano Plus (HSN Code 69072100) per box was Rs. 294.50 prior to 15.11.2017 and had remained the same even after GST rate reduction […]
It is evident from the above that the Respondent has denied benefit of ITC to the Applicants as well as the rest 64 purchasers of flats in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has thus realized more price from them than what he was entitled to charge and has also compelled them to pay more GST than what they were required to pay
Kerala State Level Screening Committee Vs M/s Peps Industries Pvt. Ltd (NAA) It is apparent from the perusal of the facts of the case that admittedly there was a decrease in the rate of tax on the said product from 28% to 18% w.e.f. 15.11.2017 but it is also established that the base (excluding GST) of the […]
Respondent cannot escape the legal obligation which was imposed upon him by Section 171 of the CGST Act, 2017, by shifting his accountability on this ground. Therefore, the above contention of the appellant cannot be accepted.