Maruti Suzuki gets Relief Order from National Anti-profiteering Authority [Read Order]

The National Anti-profiteering Authority (NAA) has dropped the anti-profiteering charges against Car manufacturers, Maruti Suzuki.

The Kerala Screening committee on anti-profiteering had referred the case to the NAA alleging that the respondent-Company had not passed the GST rate cut benefit on the sale of the Wagon R, Swift, and Alto cars.

After the investigation, the DGAP stated that the company had changed the net base price (after discount) and charged effective rate of tax post GST rollout. It was further observed that the increase in the net base price was very negligible and the same was due to the reduction in discount.

“We have carefully considered the DGAP’s Report and the documents placed on record to examine whether there was any reduction in the rate of tax during the implementation of the GST and whether the benefit of the reduction in the rate of tax was passed on or not to the recipient as provided under Section 171 of the CGST Act, 2017. First of all, it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era, as could be seen from the tabulation shown in Table-B above. Secondly, from the invoices referred above, it is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No.1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted. 8. Based on the above facts it is clear that the Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 and hence there is no merit in the application filed by the above Applicant and the same is accordingly dismissed.”