DGAP Vs Kumar 70 MM (GSTAT)
The Goods and Services Tax Appellate Tribunal heard an appeal arising from anti-profiteering proceedings relating to cinema ticket pricing following a reduction in GST rates. The matter was heard ex parte, as notices along with the Director General of Anti-Profiteering (DGAP) report were served on the respondent on several occasions, but no appearance or written submissions were made despite due service.
The case originated from an application by the Principal Commissioner, Medchal Commissionerate, Hyderabad, to the Standing Committee, alleging profiteering in the supply of services by way of admission to exhibition of cinematograph films. The allegation was that the respondent failed to pass on the benefit of a GST rate reduction notified with effect from 1 January 2019. Under Notification No. 27/2018–Central Tax (Rate) dated 31 December 2018, GST on cinema tickets priced at ₹100 or less was reduced from 18% to 12%, and from 28% to 18% where ticket prices exceeded ₹100. Instead of reducing ticket prices, it was alleged that the respondent increased the base price so as to maintain the same cum-tax selling price. A letter dated 10 June 2019 from the respondent confirmed that ticket prices in slabs of ₹80, ₹60, and ₹30 were not reduced.
