Case Law Details
Principal Commissioner Vs Asian GPR Multiplex (Competition Commission of India)
The Competition Commission of India (CCI) recently adjudicated on a case involving Asian GPR Multiplex and allegations of GST profiteering. The investigation, initiated under Rule 129(6) of the CGST Rules, 2017, examined whether the multiplex passed on the benefits of reduced GST rates on movie tickets to customers.
The case originated from an application alleging that Asian GPR Multiplex did not lower ticket prices despite a reduction in GST rates from 28% to 18% effective January 1, 2019. The Director-General of Anti-Profiteering (DGAP) conducted a thorough investigation, analyzing pre- and post-GST rate reduction pricing of movie tickets.
According to the DGAP’s report, Asian GPR Multiplex was found to have increased base ticket prices post-GST rate reduction, thereby not passing on the full benefit of the tax reduction to consumers. The investigation period spanned from January 1, 2019, to June 30, 2019, during which the multiplex allegedly profiteered Rs. 48,25,970.
The Respondent contested these findings, arguing that ticket prices were adjusted within permissible limits set by regulatory authorities and citing precedents where similar cases did not attract Section 171 of the CGST Act, 2017.
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