Anti-Profiteering — The Applicant No. 1 had filed an application in which it was alleged that the Respondent had not passed on the benefit of reduction in the GST rates on “Services by way of admission to exhibition of cinematograph films where price of admission ticket was above one hundred rupees” from 28% to 18% and “Services by way of admission to exhibition of cinematograph films where price of admission ticket was one hundred rupees or less” from 18% to 12% w.e.f. 01.01.2019, vide Notification No. 27/2018- Central Tax (Rate) dated 31.12.2018, by way of commensurate reduction in prices, in terms of Section 171 of the Central Goods and Services Tax Act, 2017 and instead, had increased the base prices to maintain the same cum-tax selling prices of the admission tickets.

The profiteered amount is determined as Rs.3,90,272/- (Rs.4,01,520- Rs.11,248) which includes an amount of Rs.14/- including the GST which the Respondent has profiteered in respect of the Applicant No.1 and Rs.3,90,258/-(Rs.3,90,272-Rs.14) in respect of the other recipients which also includes the GST on the said profiteered amount, as per the provisions of Rule 133 (1) of the CGST Rules, 2017. Accordingly, the Respondent is directed to reduce the sale prices of his admission tickets immediately commensurate to the reduction in the rates of tax as were notified on 31.12.2018 and pass on the benefit of reduction in the rates of tax to his customers. The Respondent is further directed to refund an amount of Rs.14/- to the Applicant No. 1 along with interest to be calculated @ 18% from the date when the said amount was collected by him from the above Applicant till the above amount is paid.

The Respondent has denied the benefit of rate reductions in the GST to his customers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus profiteered as per the explanation attached to Section 171 of the above Act. Therefore, he is apparently liable for imposition of penalty under Section 171 (3A) of the CGST Act, 2017. — Himanshu Sharma, Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. NY Cinemas LLP [2020] 22 TAXLOK.COM 037 (NAPA)