Case Law Details
Principal Commissioner Vs Cinema Ventures Pvt. Ltd. (Competition Commission of India)
The Principal Commissioner Vs Cinema Ventures Pvt. Ltd. case, adjudicated by the Competition Commission of India (CCI), revolves around allegations of profiteering by Cinema Ventures Pvt. Ltd. in the wake of a GST rate reduction. The investigation, initiated by the Director-General of Anti-Profiteering (DGAP), uncovered practices that potentially violated the provisions of Section 171 of the Central Goods & Service Tax (CGST) Act, 2017.
Background and Investigation
On June 28, 2019, the Standing Committee on Anti-profiteering referred a case to the DGAP following a complaint by an applicant who alleged that Cinema Ventures Pvt. Ltd. failed to pass on the benefit of a GST rate reduction on movie admission tickets. The GST rate had been reduced from 28% to 18% for tickets priced above Rs. 100, effective January 1, 2019, as per Notification No. 27/2018-Central Tax (Rate) dated December 31, 2018.
The applicant provided ticket copies from December 31, 2018, and January 25, 2019, showing the ticket price trend. The DGAP initiated an investigation to determine if Cinema Ventures Pvt. Ltd. had passed on the GST rate reduction benefits to consumers.
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