Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129 (6). An application was filed that the Respondent had not passed on the benefit of reduction in the rate of GST on Paints, from 28% to 18% w.e.f. 27-7-2018, thus denying the benefit of commensurate reduction in the cum-tax price (inclusive of 18% GST) to the recipients. The DGAP found that Respondent has denied the benefit of tax reduction to the customers in contravention of the provisions of Section 171 (1) of the Act, 2017 and he has thus committed an offence under Section 171 (3A) of the above Act. The Authority observed that since the provisions of Section 171 (3A) have come into force w.e.f. 01.01.2020 whereas the period during which violation has occurred is w.e.f. 27.07.2018 to 30.09.2018, hence the penalty prescribed under the above Section cannot be imposed on Respondent retrospectively. 

Held that:- The Hon’ble Anti-Profiteering Authority held that Show Cause Notice directing him to explain why the penalty prescribed under Section 171 (3A) of the above Act read with Rule 133 (3) (d) should not be imposed on him is not required to be issued. The concerned jurisdictional CGST/SGST Commissioner is also directed to ensure compliance of this Order.