Latest GST Judgments

For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

No profiteering on supply of readymade garments if tax rate not reduced after GST

Shanti Prime Publication Pvt. Ltd. Anti-Profiteering — The brief facts of the case are that he Kerala State Screening Committee on Anti-profiteering had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of Readymade Garments, namely, (a) Impact Shiits 700-800 HIS M.R.P. Rs.439; (b) Impact Shirts 700-800 F/S M.R.P. Rs.449; (c) Impact Shirts 900 H/S M.R.P. Rs.489; (d) Impact Shirts 900 F/S M.R.P. Rs.499; (e) Impact Shirts 1500 H/S M.R.P. Rs.689; and (f) Impact Shirts 1500 F/S M.R.P. Rs.699, by not passing on the benefit of reduction in the rate of tax at the time of implementation of the GST w.ef 01.07.2017. Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax Act, 2017.

Held that— It is clear from the perusal of the facts of the case that there was no reduction in the rate of tax on the above products w.e.f. 01.07.2017, hence the anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted. Also, there is no increase in the per unit base price (excluding tax) of the above products and therefore the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017. As such, we do not find any merit in the application filed by the above Applicant and accordingly, the same is dismissed.Kerala State Screening Committee on Anti-Profiteering. Vs. Impact Clothing Co. [2018] 7 TAXLOK.COM 044 (NAPA)