DG Anti Profiteering Vs Arjun Theatre 70MM (GSTAT)
The Goods and Services Tax Appellate Tribunal (GSTAT), Principal Bench, Delhi, confirmed the order against Arjun Theatre 70MM concerning profiteering on cinema admission tickets following the reduction in GST rate from 18% to 12% with effect from 01.01.2019. The proceedings arose from a reference received by the Standing Committee on Anti-profiteering on 05.08.2019 based on an application filed by the Principal Commissioner, Medchal Commissionerate, Hyderabad. The DGAP investigated the matter for the period from 01.01.2019 to 31.08.2019 and, in its report dated 21.01.2020, concluded that the Respondent had increased the base prices of admission tickets instead of passing on the benefit of the GST rate reduction through a commensurate reduction in prices.
The Respondent submitted that the ticket rates had been permitted to be collected pursuant to orders of the Telangana High Court and that proposed rates had been intimated to the competent authorities. It also contended that the ticket prices remained unchanged after the GST rate was reduced because the prices had been fixed or intimated in accordance with the applicable directions. The Respondent denied contravention of Section 171 of the CGST Act, 2017 and disputed the methodology and computation of profiteering.
