This Authority under rule 133(4) of the CGST Rules 2017 directs the DGAP to further investigate certain issues and furnish his Report accordingly
Section 171 of the CGST Act, 2017— Anti- Profiteering – The Report dated 02.07.2019 has been received from the DGAP after detailed investigation under Rule 129 (6), on the allegation that the Respondent had not passed on the benefit of tax reduction from 28% to 18% w.e.f. 15.11.2017 on the products which he was selling. The DGAP has concluded that by increasing the base prices of the goods consequent the reduction in the GST rate, the commensurate benefit of reduction in GST rate from 28% to 18%, was not passed on by the Respondent to the recipients and therefore, Section 171(1) of the Act has been contravened in the present case. The authority observed that the Central Government had reduced the GST rate on the FMCGs supplied by the Respondent from 28% to 18% w.e.f. 15.11.2017. The DGAP has calculated the amount of net higher sales realization due to increase in the base prices of the impacted goods by the Respondent, despite the reduction in the GST rate from 28% to 18%.
Held that:- The Hon’ble Anti-Profiteering Authority directed the DGAP to further investigate the issues and furnish his Report accordingly under Rule 129 (6) of the CGST Rules, 2017.