2018 (12) TMI 1401 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 389 (N. A. P. A.) – Profiteering – supply of “Granure Hard Nero-10 MM & Granure Hard Crema-10 MM Tiles” – benefit of reduction in rate of tax not passed on – Section 171 of the CGST Act – Held that:- It is evident that the base prices of both the products had remained same. It is also observed from the Annexure-6 attached with the Kerala Screening Committee's report that sale price of these products was reduced from ₹ 1037.52 (pre-GST revision) to ₹ 840.68 (post-GST revision) when the GST rate on the above items was revised from 28% to 18%. Thus it is clear that the base prices have not changed and accordingly the selling prices of the products have been reduced. This fact has also not been disputed by the representative of the Applicant No. 1.
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It is apparent from the perusal of the facts of the case that the Respondent has duly passed on the benefit of reduction in the tax rate by keep
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, vide the minutes of it's meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of Granure Hard Nero-10 MM & Granure Hard Crema-10 MM Tiles (HSN code 69072100), by not passing on the benefit of reduction in the rate of tax of GST w.e.f. 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. In this regard, Kerala State Screening Committee has relied on two invoices issued by the Respondent, one dated 30.08.2017 (Pre-GST rate reduction) and the other dated 28.11.2017 (Post-GST rate reduction). 2. The above application was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of it's meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017. 3. The DGAP has stated in his Report dated 27.09.2018 that the GST rate on the products Granure Hard Nero-10 MM & Gr
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ate reduction w.e.f. 15. 11.2017, which were ₹ 743.95 & ₹ 650.93 in both the periods. Thus, though the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017, the absence of any upward change in the per unit base price (excluding GST) confirmed that the allegation of profiteering by the Respondent was not sustainable. 5. The above report was considered by the Authority in it's meeting held on 03.10.2018 and it was decided that as there was no private applicant, The Kerala Screening Committee may be asked to appear before the Authority on 31.10.2018. Smt. A. Shainamol, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1. During the hearing she agreed to the report submitted by the DGAP. 6. We have carefully examined the DGAP's report and the documents placed on record to examine whether there was any reduction in the GST rate and whether the benefit of reduction in the rate of tax was passed on or not to the recipient as provided under
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