9911796707
TMI Blog2019 (3) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... fter 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 its meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of 'Little Stars Dhoti (5-6)' (here-in referred to as the product) by not passing on the benefit of reduction in the rate of tax at the time of implementation of the Goods and Services Tax (GST) w.e.f. 01.07.2017. Thus, it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of CGST Act, 2017. In this r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST era (GST). The DGAP has also observed that the Respondent did not increase the base price (excluding tax) of the product, which was Rs. 265/- in both the periods. Further, Section 171 of the CGST Act, 2017 comes into play in the event there is a reduction in rate of tax or there is an increase in the input tax credit (the latter is not the subject matter of this enquiry). Consequently, the DGAP has stated that as there was no reduction in e tax rate of the said product 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. 5. The above Report was considered by the Authority in its meeting held on 03.10.2018 and it was decided that since t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st-CST it attracted IGST @ 5%. The DGAP has further observed that there was no Central Excise Duty in terms of Notification No. 30/2004- Central Excise dated 09.07.2004, and the pre-GST unit base price of Rs. 265/- had remained unchanged even after introduction of CST w.e.f. 01.07.2017. 8. The DGAP has also stated that the incidence of IGST post-GST was @ 5%, being higher than the pre-GST incidence @ 2% of CST, therefore, the provisions of Section 171 of the CGST Act, 2017 were not attracted He has also furnished the following details in this regard:- Particulars Pre-GST Post-GST Base price per piece as per Annexure-7 (Rs.) 265/- 265/- CST @ 2% (Rs.) 5.30/- -- IGST @ 5% (Rs.) -- 13.25/- Total price per piece (Rs.) 270.30/- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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