DG Anti Profiteering Vs ASR Cinema LLP (GSTAT)
The case arose from a complaint alleging that ASR Cinemas LLP failed to pass on the benefit of a reduction in GST rate on cinema admission tickets from 18% to 12%, effective from 1 January 2019, as required under Section 171 of the CGST Act, 2017. The complaint was referred to the Director General of Anti-Profiteering (DGAP) for investigation after the Standing Committee found a prima facie case.
The DGAP investigated the period from 1 January 2019 to 30 September 2019 and found that although the GST rate on admission tickets priced at ₹100 or less was reduced from 18% to 12%, the Respondent did not reduce ticket prices correspondingly. Instead, it increased the base prices of tickets across all categories while maintaining the same cum-tax selling price. The investigation was conducted primarily on the basis of GSTR-1 and GSTR-3B returns because the Respondent did not furnish complete documents despite repeated opportunities. The DGAP found that the base price of tickets increased by approximately 5.37% across categories such as Platinum, Gold Class, and Silver Class tickets.
Based on turnover figures for the investigation period, the DGAP calculated profiteering of ₹8,63,919 and GST thereon of ₹1,03,670, resulting in a total profiteered amount of ₹9,67,589. The DGAP also noted that the actual profiteering could be higher because complete information had not been provided by the Respondent.
