Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the base price of the Power Bank under investigation was indeed increased post GST rate reduction w.e.f. 15.11.2017. Thus, by increasing the base price of the Power Bank consequent to the reduction in GST rate, the commensurate benefit of reduction in GST rate from 28% to 18% was not passed on to the recipients. The authority observed that the benefit of reduction in the GST rate has not been passed on to the recipients by way of commensurate reduction in the prices by the Respondent, in terms of Section 171 (1) of the Act.

Held that:- The Hon’ble Anti-Profiteering Authority directed that since the customers/recipients, are not identifiable, therefore, fifty percent of the amount of along with interest at the rate of 18% be deposited in the Central Consumer Welfare Fund and the balance amount is to be deposited in the CWF of the concerned State. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and hence, was not in force during the period of investigation i.e. from 01.07.2017 to 30.09.2019, when the Respondent had committed the above violation and hence the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.