Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 30-10-2018 – The National Anti-profiteering Authority (NAA) is one of its recent order dated 07.09.2018 in Pawan Sharma C/o Kalptaru Departmental & General Stores and Director General of Anti-profiteering v. Sharma Trading Company [(2018) 9 TMI 625 (NAA)] has upheld the charge of anti-profiteering where the supplier did not pass on the benefit of GST rate cut to the customer. It also ordered that a monetary penalty of ₹ 10,000 or actual amount of tax not reduced whichever is higher, be imposed. In the instant case, there was a complaint that the benefit of reduction in the rate of tax has not been passed by lowering the price of product, Vaseline VTM 400 ml , when
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noted that It is clear from the facts of the present case that the Respondent was fully aware of the Notification dated 14.11.2017 whereby the rate of GST was reduced on the above product from 28% to 18%. It was also fully aware of the provisions of Section 171 of the above Act whereby it was bound to pass on the benefit of reduction in the rate of tax by the commensurate reduction in the price of the above product. The contention that no profiteering was involved on the part of respondent on the contention in the present case as the Applicant had returned the product on 15.12.2017 which was sold to him on 15.11.2017 and a credit note had been issued in his favour by the Respondent and hence the above transaction was null and void was not c
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e of the above law and hence he is guilty of the conduct which is contumacious and dishonest. It has further acted in conscious disregard of the obligation which was cast upon him by the law, by issuing incorrect invoices in which the base price was deliberately enhanced exactly equal to the amount of reduced tax and thus it had denied the benefit of reduction in the rate of tax granted. NAA order dictate Reduce sale price with immediate effect Pass the rate deduction benefit to customers Pay penalty of ₹ 10000 or tax involved, whichever is higher While confirming the imposition of the penalty, the NAA directed the respondent to reduce the sale price of the product immediately commensurate to the reduction in the rate of tax as was no
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