DGAP Vs Sane Retails Pvt. Ltd. (GSTAT)
The proceedings arose from a complaint filed by Shri Rohit Kumar Agrawal alleging that M/s Sane Retails Pvt. Ltd. failed to pass on the benefit of reduction in GST rate from 28% to 18% on “MI LED Television 4A 80 cm” with effect from 01.01.2019, pursuant to Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018. The matter was referred by the Standing Committee on Anti-Profiteering to the DGAP under Rule 129 of the CGST Rules, 2017.
The DGAP examined invoices and outward taxable supply details for the pre-rate-reduction period from 01.11.2018 to 31.12.2018 and the post-rate-reduction period from 01.01.2019 to 31.12.2019 and initially determined profiteering of Rs. 7,79,947/-. Following cessation of the National Anti-Profiteering Authority, the matter was transferred through the Competition Commission of India to the GST Appellate Tribunal.
The Tribunal directed the Respondent to establish that the profiteered amount had been refunded to affected customers. The Respondent submitted Electronic Gift Voucher (EGV) screenshots, an Excel mapping of vouchers to customer orders and invoices, and subsequently credit notes. The DGAP initially objected that the EGVs were conditional, time-bound and restricted and that their system description, “Offers and cash back”, did not establish that the GST benefit had been passed on.
