Prasad Media Corporation denied Benefit of Rate Reduction to Consumers: NAA imposes Penalty [Read Order]

The National Anti-Profiteering Authority (NAA) held that Prasad Media Corporation denied the benefit of rate reduction to consumers in the contravention of the provisions of Section 171(1) of the CGST Act, 2017 and NAA imposed penalty under Section 171(1) of the Act.

the Applicant filed an application under Rule 128 of the CGST Rules, 2017 alleging profiteering by the Respondent, Prasad Media Corporation in respect of the supply of Services by way of admission to an exhibition of cinematograph films where the price of admission ticket was above one hundred rupees despite the reduction in the rate of GST from 28% to 18%.

The DGAP also reported that the main issues to be examined in the present matter were whether the GST rate on Services by way of admission to the exhibition of cinematograph films where the price of admission ticket was above one hundred rupees was indeed reduced from 28% to 18% and if so, whether the benefit of such reduction in the rate of GST had been passed on by the Respondent to his recipients, in terms of Section 171 of the CGST Act, 2017.

The Authority consisting of the Members J.C. Chauhan and Amand Shah held that Prasad Media Corporation denied the benefit of rate reduction to consumers in the contravention of the provisions of Section 171(1) of the CGST Act, 2017 and NAA imposed penalty under Section 171(1) of the Act.

“The Respondent is directed to deposit the amount of profiteering of Rs. 15,06,529/- in the Central Consumer Welfare Fund (CWF) and Rs. 15,06,529/- in the Telangana State CWF as per the provisions of Rule 133 (3) (c) of the CGST Rules 2017, along with 18% interest. The above amount shall be deposited within a period of 3 months from the date of receipt of this Order failing which the same shall be recovered by the Commissioner SGST as per the provisions of the SGST Act, 2017,” the NAA said.