No profiteering by tiles dealer where selling price reduced pursuant to tax rate reduction: NAA

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M/s. Asian Granito India Ltd (“the respondent”) was engaged in supply of granure hard nero and granure hard crema – 10 MM tiles.The Kerala State screening Committee on Anti-Profiteering, alleging Profiteering by the respondent on the supply of “Granure Hard Nero-10 MM &Granure Hard Creama-10 MM Tiles”, by not passing on the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f. from November 15, 2017, vide Notification No. 41/2017-Central Tax (Rate) dated November 14, 2017.

The directorate General of Anti-Profiteering (DGAP) vide Case No: 21/2018 dated December 24, 2018 has stated that GST rate on the products was reduced from 28% to 18% vide N. No: 41/2017. Further the respondent has duly passed on the benefit of reduction in the tax rate by not increasing the per unit base price excluding GST on both the products after GST rate reduction. Thus it is clear that the base price of the product has not changed and accordingly the selling price of the product has been reduced.  Therefore, the anti-profiteering provisions contained in Section 171(1) of the CGST Tax Act, 2017 are not attracted. Hence there is no merit in the application filed by the applicant and same is accordingly dismissed. 

Citation: [TS-809-NAA-2018-NT]