M/s Peps Industries Pvt. Ltd (“the respondent”) is engaged in supply of Peps Spring KoilBornell Normal Maroon Mattress.The Kerala State screening Committee on Anti-Profiteering alleging profiteering on the supply of Peps Spring KoilBornell Normal Maroon Mattress 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. 22/2018 dated December 24, 2018, stated that in the pre-GST era, the applicable CST on the product was being levied @2% and central Excise Duty @12.5%. But in post GST era the rate of tax was levied @28%. Therefore, there was no reduction in the rate of tax on the product in the post GST era as compare to pre GST era, the provisions of Section 171 of the CGST Act, 2017 were not contravened and hence the allegation of profiteering by the Respondent was not established.