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TMI Blog2019 (1) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... rate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that the Kerala State Screening Committee on Anti-Profiteering, vide the minutes of it's meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on supply of four models of Motor Car, namely, 'Wagon R VXI AMT', 'Swift VXI', 'Alto 800 LXI' & Wagon R VXI' (HSN code- 8703), by not passing on the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f. 01 .07.2017. In this regard, the Kerala State Screening Committee relied on two invoices issued for each of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished in Table-B below:- Table-B Particulars Wagon R AMT Swift VXI (O) Wagon R VXI Alto 800 1-XI Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Invoice No. 11809050 11931762 11608607 1143723 11614808 1130822 11618491 1124140 Invoice Date 2.6.17 19.7.17 3.04.17 15.9.17 4.4.17 19.9.17 5.4.17 15.9.17 Base price (Before Discount) A 335,599 335,599 403,632 403,632 310,723 310,723 210,128 213,012 Freight & Admin Charges B 559 559 559 559 559 559 559 559 Discount C 8,135 7,945 1,814 1,604 7,601 11,054 13,959 17,930 Net Base price (After Discount) D=A+B-C 328,023 328,213 402,377 402,587 303,681 300,228 196,728 195,641 Assessable Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CGST Act, 2017 the anti-profiteering provisions are attracted only when there is a reduction in the rate of tax or increase in the input tax credit and therefore in the present case as there has been no reduction in the rate of tax, the allegation of profiteering by the Respondent was not established. The DGAP further observed that the selling price of the Respondent to his dealer had increased primarily because of the incidence of rate of tax had gone up from 15.63% to 29% as the afore mentioned transactions were in inter-state sale (Sale from Haryana State to Kerala State) where 1% CST was charged in pre-GST period whereas in post-GST 29% tax was charged. Therefore, the cum-tax price had increased. 4. The DGAP also stated from the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have carefully considered the DGAP's Report and the documents placed on record to examine whether there was any reduction in the rate of tax during the implementation of the GST and whether the benefit of reduction in the rate of tax was passed on or not to the recipient as provided under Section 171 of the CGST Act, 2017. First of all it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era, as could be seen from the tabulation shown in Table-B above. Secondly from the invoices referred above, it is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No. 1. Hence the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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