Principal Commissioner Vs Ranga 70 MM (Competition Commission of India)
The case of Principal Commissioner vs Ranga 70 MM addresses whether the respondent cinema hall passed on the GST rate reduction on cinema tickets to customers, as mandated by Section 171 of the CGST Act. The GST rates on cinema tickets were reduced from 18% to 12% (for tickets priced ₹100 or less) and from 28% to 18% (for tickets priced above ₹100) effective January 1, 2019. The Director General of Anti-Profiteering (DGAP) initiated an investigation after receiving a complaint that the cinema hall had increased the base price of tickets, maintaining the overall cost despite the tax reduction. The investigation revealed that the base prices were indeed raised, resulting in an alleged profiteering amount of ₹24,25,630 during the period from January to June 2019. The respondent claimed that ticket prices were regulated by the state authorities and producers, and they had received approval for price increases. However, the DGAP found that the respondent did not comply with the GST reduction and recommended action under Section 171 for contravention of anti-profiteering provisions.
FULL TEXT OF THE ORDER OF COMPETITION COMMISSION OF INDIA
The present Report dated 27.12.2019 had been received from the Director General of Anti-Profiteering (hereinafter referred to as the
“DGAP”) on 27.12.2019 by the erstwhile National Anti-Profiteering Authority (hereinafter referred to as the “NAA”) after a detailed investigation under Rule 133(4) of the Central Goods & Service Tax (CGST) Rules, 2017 (hereinafter referred to as the “Rules”).
