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The Respondent has denied the benefit of rate reduction of the GST to the consumers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus resorted to profiteering.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The applicant has referred case to the Standing Committee on Anti-profiteering against the Respondent alleging profiteering on the supply of “Refrigerator Whirlpool FP313D PROTTON ROY MIRROR” (HSN code 84182100) by not passing on the benefit of reduction in the rate of tax w.e.f. 01.07.2017, by way of commensurate reduction in price, in terms of Section 171 of the Act, 2017. The Standing Committee on Anti-profiteering decided to refer the matter to the DGAP. The DGAP concluded that the basic price (excluding tax) of the impugned product was increased by the Respondent although there was a reduction in the rate of tax after 01.07.2017, thus, the commensurate benefit of reduction in the GST rate was not passed on to the recipients.
Held that:- The Hon’ble Anti-Profiteering Authority held that the respondent has denied the benefit of rate reduction of the GST to the consumers in contravention of the provisions of Section 171 (1) of the Act, and has resorted to profiteering. Hence, he has committed an offence under Section 171 (3A) of the Act and therefore, liable for imposition of penalty. The Authority directed the respondent to reduce the price of the product and to deposit the profiteered amount along with the interest, within a period of 3 months.—Kerala State Screening Committee on Ant-Profiteering, Director General of Anti-Profiteering, Indirect Taxes & Customs. Vs Whirlpool of India Ltd. [2020] 25 TAXLOK.COM 030 (NAPA)