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Increase in base price after reduction of GST rate amounts to profiteering.

Anti-Profiteering — The brief facts of the present case are that the DGAP had received a reference from the Standing Committee on Anti-Profiteering on 27.03.2019 to conduct a detailed investigation in respect of an application dated 30.07.2018 (Annexure-I) filed by the Applicant No. 1 against the Respondent in respect of supply of Deodorant 'Wild Stone Deo Chrome BX 120 ml'. The Applicant No. 1 had stated that the above product had been shipped by the Respondent to M/S Big Bazar, Inderlok on 28.09.2017 under Purchase Order No. 8114615731 with the MRP of Rs. 250/3 was again supplied on 04.12.2017 under Purchase Order No. 8115262327 with the MRP of- Rs. 250/- and on 16.06.2018 it was again sold under Purchase Order No. 4518224285 with the same MRP of Rs. 250/-. The above Applicant had alleged that the Respondent had not pass on the benefit of reduction in the GST rate from 28% to 18% w.e.f. 15.11.2017 which was reduced vide Notification No. 41/2017-Central Tax (Rate) dated 14.112017 in terms of Section 171 of the CGST Act, 2017 and instead, he had increased the base price of 'Wild Stone Deo Chrome BX 120 ml' Deodorant to maintain the same MRP of Rs. 250/-.

This Authority as per Rule 136 of the CGST Rules 2017 directs the Commissioners of CGST/SGST to monitor this order under the supervision of the DGAP by ensuring that the amount profiteered by the Respondent as ordered by this Authority is deposited in the CWFs of the Central and the State Governments. — Rahul Sharma, M/S. Local Circle India Pvt. Ltd., Director General of Anti-Profiteering, Indirect Taxes And Customs Vs. Mcnroe Consumer Products Pvt. Ltd. [2020] 22 TAXLOK.COM 029 (NAPA)