Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 15-11-2018 Last Replied Date:- 15-11-2018 – Statutory Provisions The provisions are contained in the GST law as per following provisions: CGST Act, 2017 Section 171 on Anti-profiteering measures IGST Act, 2017 Section 20 which stipulate that provisions of CGST Act, 2017 shall apply mutatis mutandis to IGST Act UTGST Act, 2017 Section 21 which stipulate that provisions of CGST Act, 2017 shall apply mutatis mutandis to UTGST Act SGST Act, 2017 Section 171 on Anti-profiteering measures The Rules for Anti Profiteering are contained in Chapter XV (Rule Nos. 122 to 137) of the Central Goods and Services Tax Rules, 2017. Section 171 provides that it is mandatory to pass on the benefit due to reduction in rate of tax or from input tax credit to the consumer by way of commensurate reduction in prices. Scope and Objective Anti-profiteering is a new concept being tried out for the first time. The intention is to make it sure that
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oncluded in more than half of these orders that profiteering could not be established or was absent, yet in the other cases / complaints, indulgence in Anti-profiteering was established and penal action taken. The NAA orders can be tabulated as follows: NAA Orders: A Snapshot Complaint Against Issue Anti-Profiteering M/s Vrandavaneshwree Automotive Pvt. Ltd. Price difference on sale of car in GST regime booked in pre-GST regime Not established M/s KRBL Ltd Levy of GST @5% on branded rice in GST regime Not established M/s Schindler India Pvt. Ltd., Mumbai Purchase of lift before and after GST, GST charged on excise duty Not established M/s Flipkart Internet Pvt. Ltd., Bangalore Discount withdrawn on sale of Godrej almirah on Flipkart Not established M/s Sharma Trading Company Rate of Vaseline reduced from 28% to 18%, but supplier charged 28% Upheld M/s Pyramid Infratech Pvt. Ltd. ITC benefit on construction not passed on Upheld M/s Lifestyle International Pvt. Ltd. Rate on cosmetics red
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fiteering law can be established: A supplier cannot be allowed to resort to profiteering. GST benefit irrespective of the amount has to be passed on to the buyer. Cases of Anti-profiteering have to be determined on case to ease basis taking into account tax benefit, other costs etc. Benefit cannot be denied on the grounds of convenience to retailer or customer in terms of price, being in whole number (e.g. on ₹ 5 per pack benefit was 21 paisa only and hence not passed on). Rate change should result in commensurate reduction in price of product/ service. Anti-profiteering law is applicable to both, B2B and B2C transactions. Benefit on a particular product cannot be passed on or transferred to other products of the same company and benefit denied to a class of customers. It should be done product wise, not even an a basket of products. Benefit should be passed on at each unit and it can not be averaged out. Rate reduction benefit to other similar products having different grammage
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