M/s. Maruti Suzuki India Ltd. (“the respondent”) was engaged in the supply of four models of Motor Car, namely “Wagon R, VXI AMT, Swift VXI, Alto 800 LXI, and Wagon R VXI”. The Kerala State Screening Committee on Anti-Profiteering alleging profiteering on the supply of four models of Motor Car, namely “Wagon R, VXI AMT, Swift VXI, Alto 800 LXI, and Wagon R VXI by not passing the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f. from July 01, 2017.
The Directorate General of Anti-Profiteering (DGAP) vide Case No. 01/2019 dated January 02, 2019, stated that there was an increase in the rate of tax on the aforesaid product from 15.63% in the pre-GST era to 29% in the post-GST era. DGAP further stated that as per section 171(1) of the CGST Act, 2017 the anti-profiteering provisions are attached only where there is a reduction in rate of tax or increase in the input tax credit and therefore in the present case there is no reduction in the rate of tax, the allegation of profiteering by the respondent was not established. Therefore, the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017, hence the allegation of profiteering by the Respondent was not established.
Citation:  101 taxmann.com 64 (NAA)