No Anti-profiteering, if the base price of product remains same even after reduction in GST rates: NAA

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Facts: M/s. Asian Paints Ltd. (“the respondent”) was alleged on supply of “Paint [AP Woodtech Wood Stain Walnut 500ml (HSN Code 3213)]” (“Product”), by not passing on the benefit in rate of tax reduction at time of implementation of GST w.e.f. July 01, 2017. The application was examined by Standing Committee on Anti-Profiteering which was further investigated by Director General of Anti-Profiteering (“DGAP”) on the basis of two invoices of the dealer which was submitted for reference.

Held: The Hon’ble National Anti-Profiteering Authority (“NAA”) vide its Case No. 18 of 2019 dated March 13, 2019 held that the respondent had maintained the same base price post reduction in the rate of tax w.e.f. November 15, 2017, resulting in reduction in the cum-tax price from Rs. 175.40/– to Rs. 161.70/-. Since the benefit of tax reduction has been passed on by the Respondent by commensurate reduction in his price. Therefore, it can be concluded that there was no reduction in the base price of the product and hence there is no contravention of the anti-profiteering provisions contained in Section 171(1) of the CGST Act, 2017.

 Citation: [2019] 103 taxmann.com 184 (NAA)

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