Case Law Details
Principal Commissioner Vs Srinivasa Cine Enterprises (Competition Commission of India)
Introduction: The Competition Commission of India (CCI) recently ruled on a case involving Srinivasa Cine Enterprises, finding them guilty of not passing on the benefits of a reduction in the Goods and Services Tax (GST) rate. This article delves into the details of the case, exploring the investigation, the arguments presented, and the CCI’s conclusions.
Detailed Analysis: The investigation, initiated under Rule 129(6) of the Central Goods & Service Tax (CGST) Rules, 2017, stemmed from an application alleging profiteering in the supply of “Services by way of admission to exhibition of cinematography films.” The applicant claimed that Srinivasa Cine Enterprises did not pass on the benefit of the GST rate reduction from 18% to 12% starting January 1, 2019.
The Standing Committee on Anti-profiteering forwarded the application to the Director-General of Anti-Profiteering (DGAP) for a detailed investigation. The DGAP issued notices, collected evidence, and examined the Respondent’s submissions.
The Respondent argued that they had not increased prices due to GST, claiming to have passed on the benefits to customers. However, the DGAP’s analysis revealed an increase in base ticket prices despite the GST rate reduction.
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