Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 25-1-2019 – The GST law contains a provision on anti-profiteering measure as a deterrent for trade and industry to enjoy unjust enrichment in terms of profit arising out of implementation of Goods and Services Tax in India, i.e., anti-profiteering measure would obligate the businesses to pass on the cost benefit arising out of GST implementation to their customers. The Authority constituted by Central Government has powers to impose a penalty in case it finds that the price being charged has not been reduced consequent to reduction in rate of tax or allowance of input tax credit. During the two years of initial transition into GST regime, Anti-Profiteering Authority (NAA) has the mandate to ask businesses that have not passed on full benefits of reduced tax burden to consumers to make up for such benefit, with interest. During the year 2018, the NAA has passed 28 orders against the complaints referred to it. Following i
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orders against the complaints referred to it. Following is the gist of NAA Orders issued in 2018. It may be noted that out of 28 Orders, Anti-profiteering could not be established in 18 cases. S.No. Date Complaint Against Issue Anti-Profiteering Citations 1 27.03.2018 M/s Vrandavaneshwree Automotive Pvt. Ltd. Price difference on sale of car in GST regime booked in pre-GST regime Not established (2018) 4 TMI 1377 (NAA) 2 04.05.2018 M/s KRBL Ltd Levy of GST @5% on branded rice in GST regime Not established (2018) 5 TMI 760 (NAA) 3 31.05.2018 M/s Schindler India Pvt. Ltd., Mumbai Purchase of lift before and after GST, GST charged on excise duty Not established (2018) 6 TMI 687 (NAA) 4 18.07.2018 M/s Flipkart Internet Pvt. Ltd., Bangalore Discount withdrawn on sale of Godrej almirah on Flipkart Not established (2018) 7 TMI 1490 (NAA) 5 07.09.2018 M/s Sharma Trading Company Rate of Vaseline reduced from 28% to 18%, but supplier charged 28% Upheld (2018) 9 TMI 625 (NAA) 6 18.09.2018 M/s Pyra
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athing Bar and instant Drink Powder on old MRP even after GST fixed @ 18% Not established (2018) 11 TMI 1011 (NAA) 13 16.11.2018 M/s Hard Castle (McDonald s) No passing of benefit of GST rate reduction from 18% to 5% on supplies of burgers Upheld [2018] 11 TMI 1073 (NAA) 14 28.11.2018 M/s Theco India Pvt. Ltd. (Milling Machine Furnace) No passing of benefit of GST rate reduction and ITC on purchase of important machinery Upheld 2018 (12) TMI 135 (NAA) 15 06.12.2018 M/s J.P. and Sons (Johnson & Johnson Baby) Charge of same MRP after tax reduction Upheld (2018) 12 TMI 472 (NAA) 16 07.12.2018 M/s Harish Bakers & Confectioners Pvt. Ltd. (Cadbury Dairy Milk Chocolate) No passing of benefit of GST rate reduction from 28% to 18 % on chocolates Upheld (2018) 12 TMI 473 (NAA) 17 17.12.2018 M/s Landmark Automobiles Pvt. Ltd. (Honda Car) Allegation of not passing of benefit of ITC on sale of Honda Car Not established (2018) 12 TMI 1002 – (NAA) 18 17.12.2018 M/s Zeba Distributors, Immanuel
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