Reduction in GST Rate on Monitors and TVs of Screen Size up to 32 inches: NAA finds Supplier Guilty of Anti-Profiteering [Read Order]

The National Anti-Profiteering Authority (NAA), held M/s Sri Rana Electronics and Home Appliances has not passed benefit of reduction in GST rate on Monitors and TVs of screen size up to 32 inches to the recipients and found guilty of anti-profiteering.

An application was filed against the respondent M/s Sri Rana Electronics and Home Appliances alleging that the respondent had not reduced the selling price of the ‘Monitors and TVs of screen size up to 32 inches’, when the GST rate was reduced from 28% to 18% and the price of the product was increased by the respondent and thus the benefit of reduction in GST rate was not passed on to the recipients by way of commensurate reduction in price, in terms of section 171 of CGST Act, 2017.

The DGAP concluded that by increasing the base price of the goods subsequent to the reduction in the GST rate, the commensurate benefit of reduction in the GST rate was no passed on to the recipients. Section 171 (1) Central Goods and Services Tax Act, 2017 requiring that “any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipients by way of commensurate reduction in prices” has been contravened. The respondent submitted that he agreed with DGAP Report and had deposited the profiteered amount Rs. 4699/- in Consumer Welfare Funds.

The Coram of Mr. Amand Shah, Chairman, Mr. Pramod Kumar Singh, Technical Member and Mr. Hitesh Shah Technical Member has held that the benefit of reduction in the GST rate has not passed to the recipients by reduction in price by the respondent. The respondent has contravened the provisions of section 171(1) of the CGST Act, 2017.

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