NAA drops Anti-Profiteering Charges since no Rate Reduction was there on Product Post- GST [Read Order]

In an order favoring the distributors of Eastern Meat Masala, the National Anti-profiteering Authority ( NAA ) has dropped the anti-profiteering charges against the distributors by finding that there was no reduction in the tax rates of the above products after the GST rollout.

A complaint was lodged against the respondent alleging that they have indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax (CGST) Act, 2017. Two invoices dated 06.02.2017 (Pre-GST) and 02.07.2018 (Post-GST) was submitted before the screening committee. Relying on the same, the screening committee referred the matter to the NAA.

After going deep into the facts of the case, the authority noted that “It is apparent from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017, hence the anti-profiteering provisions contained in Section 171(1) of the Central Goods and Services Tax Act, 2017 are not attracted. There is also no increase in the per unit base price (excluding tax) of the above product and therefore the allegation of profiteering is not sustainable.”