NO PROFITEERING WHEN BASE PRICE IS CONSTANT & SELLING PRICE REDUCED
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 16-2-2019
The complaint against profiteering came up recently before the National Anti-profiteering Authority (NAA) in a case involving supply of tiles. In Kerala State Screening Committee on Anti-profiteering & DGAP, CBIC New Delhi v. Asian Grantio India Ltd., Ahmedabad (2018) 12 TMI 1401; the NAA vide its Order dated 24.12.2018 ordered that where the business entity has duly passed on the benefit of reduction in the tax rate by keeping the base price constant thus reducing the selling price of the products in question, the anti-profiteering provisions contained in Section 171 (1) of the CGST Ta
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Rs.)
1101171B/G01063 dated 30.08.2017
28%
743.95
110/1716/G02733 dated 28.11.2017
18%
743.95
–
1110/1716/G01063 dated 28.11.2017
28%
650.93
1110/1716/G02733 dated 28.11.2017
18%
650.92
-0.01
The DGAP observed that the business entity had not increased the per unit base price (excluding GST) of both the products after GST rate reduction w.e.f. 15. 11.2017, which were ₹ 743.95 and ₹ 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 was not sustainable.
The NAA took up the matter to examine whether there was any reduction in the GST rate
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