The National Anti-profiteering Authority (NAA) found M/s Neeva Food Private Limited guilty for not passing the GST rate reduction benefit to the consumers.
The complaint against the respondent-restaurant, M/s Neva Food Private Limited, was that after the GST rate reduction in November 2017 where the rates were decreased to 5% from 18%, they did not pass the benefit to the consumers. Also, it increased the base prices of different items.
The issue, in this case, was whether the rate of GST on the service supplied by the respondent was reduced from 18% to 5% with effect from November 15, 2017, and if so whether the benefit of such reduction had been passed on by the respondent to his recipient in terms of Section 171 of CGST Act, 2017.
The report prepared by DGAP stated that with effect from November 15, 2017, when the GST rate on restaurant service was reduced from 18% to 5% along with the condition that the ITC was not available to the Respondent.
The three-member bench of the Authority headed by Chairman B.N Sharma observed that M/s Neva Food Private Limited guilty for not passing the GST rate reduction benefit to the consumers and contravened the provisions of Section 171(1) of CGST Act, 2017.
The Authority also directed the Commissioners of CGST/ SGST to monitor the order under the supervision of DGAP and ensure that the profiteered amount must be deposited in Consumer Welfare Funds (CWFs) of the Central and Maharashtra State government.
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