Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the base price of the Sanitary Napkin was increased when there was exemption from GST w.e.f. 27.07.2018, so that the commensurate benefit of GST exemption was not passed on to the recipients. The authority found that the Respondent have profiteered by an amount of Rs. 2096/- as has been computed for exemption of GST w.e.f. 27.07.2018 and had not been passed on to his Recipients by way of commensurate reduction in prices of “Sanitary Napkins” during the period of investigation i.e. 27.07.2018 to 31.10.2020.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to deposit an amount of Rs. 2,094/- in two equal parts of Rs. 1047/-each in the Central Consumer Welfare Fund and the Uttar Pradesh Consumer Welfare Fund as per the provisions of Rule 133 (3) (e) of the CGST Rules 2017, along with interest payable @ 18%. 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 27.07.2018 to 31.10.2020, therefore, the Respondent is liable for imposition of penalty under the provisions of the above Section for the amount profiteered from 01.01.2020 onwards. Accordingly, notice be issued to him.