DG Anti Profiteering Vs Amb Cinemas LLP (GSTAT)
The proceedings arose from a complaint alleging that the respondent cinema operator engaged in profiteering by not passing on the benefit of reduction in GST rates on cinema tickets from 28% to 18% effective 01.01.2019, in violation of Section 171 of the CGST Act, 2017. The complaint was examined by the Standing Committee and referred to the Director General of Anti-Profiteering (DGAP), who initiated investigation proceedings.
The DGAP found that the respondent continued to charge the same ticket prices—₹300 for platinum seats and ₹200 for gold seats—both before and after the GST rate reduction. Instead of reducing prices, the respondent increased the base price, thereby maintaining the same final ticket price and not passing on the benefit of reduced tax to consumers. The respondent deposited ₹35,66,308 along with interest for the initial period from 01.01.2019 to 05.02.2019. It also reduced prices for a limited period from 06.02.2019 to 21.02.2019 but not to the extent required. Thereafter, from 22.02.2019 to 30.06.2019, the respondent increased the base price again while keeping the final ticket prices unchanged.
The DGAP calculated profiteering across three periods. For the initial period, a minor shortfall remained. For the period from 06.02.2019 to 21.02.2019, excess charges of ₹44,380 were identified. For the period from 22.02.2019 to 30.06.2019, significant profiteering was computed due to continued pricing practices. The total profiteering amount, after adjusting amounts already deposited, was determined at ₹1,16,35,128. The DGAP concluded that the respondent contravened Section 171(1) of the CGST Act.
