9911796707
TMI Blog2019 (4) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... of the product was ₹ 1028.07 per square meter in the invoice dated 24.05.2017 and the price of the product was reduced to ₹ 1021.73 in the invoice dated 09.08.2017 after giving a discount of 17.05% on the base price of ₹ 1231/- per square meter (discount of ₹ 90,572/- was given on the total invoice value of ₹ 5,31,125.41 @ 17.05%). Further, the price of the product also remained at ₹ 1021.73 in the invoice dated 02.12.2017 after giving a discount of 17.05% on the base price of ₹ 1231/- per square meter (discount of ₹ 6249/- was given on the total invoice value of ₹ 36,646.87 @ 17.05%). It is apparent that the Respondent did not increase the per unit base price (excluding GST) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Goods and Services Tax (GST) w.e.f 01.07.2017 and also when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017 vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. 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 regard, the Applicant No. 1 had relied on three invoices issued by the Respondent, one was dated 24.05.2017 (Pre-GST), the second one dated 09.08.2017 (Post-GST) and the third one dated 02.12.2017 (Post CST rate reduction w.e.f. 15.11.2017). 2. The above reference was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of its meeting dated 02.07.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 028.07 ( without any discount ) 115 dated 9/08/2017 28% 1021.73 (with 17.05% discount) - 7.34 After scrutiny of the above two invoices issued by the Respondent, the DGAP has reported that after implementation of the GST w.e.f. 01.07.2017, whilst the applicable tax rate on the product was reduced from the existing rate of 28.81% to 28%, the Respondent had reduced the per unit base price of the product (excluding tax) from ₹ 1028.07 to ₹ 1021.73. 4. The DGAP has also reported that on scrutiny of the two invoices dated 09.08.2017 (Pre rate revision) and 02.12.2017 (Post rate revision), issued by the Respondent, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.2017, the Respondent did not increase the per unit base price of the product (excluding GST), which remained unchanged at ₹ 1021.73. 5. The DGAP has also reported that CGST Act, 2017 comes into play in the event if there is 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 a reduction in the per unit base price (excluding tax) in the post-GST era as compared to the pre-GST era and when the GST rate was reduced from 28% to 18% w.e.f 15.11.2017, the per unit base price (excluding GST) had remained the same at ₹ 1021.73, there has been no contravention of the above Section. 6. The D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant No. 1 on 31.10.2018. 8. During the hearing, it was observed that some values of the invoices enclosed with the DGAP's Report were different than those relied upon in the DGAP's Report, therefore, the Authority vide its order dated 12.12 2018 had decided to sent the DGAP's Report back to him for re-investigation on the above mentioned issue under Rule 133 (4) of the CGST Rules, 2017. 9. The DGAP vide his Report dated 02.02.2019, received by the Authority on 04.02.2019 has submitted that the base price of the product was ₹ 1028.07 per square meter in the invoice dated 24.05.2017 and the price of the product was reduced to ₹ 1021.73 in the invoice dated 09.08.2017 after giving a discount of 17.05% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 1028.07 per square meter in the invoice dated 24.05.2017 and the price of the product was reduced to ₹ 1021.73 in the invoice dated 09.08.2017 after giving a discount of 17.05% on the base price of ₹ 1231/- per square meter (discount of ₹ 90,572/- was given on the total invoice value of ₹ 5,31,125.41 @ 17.05%). Further, the price of the product also remained at ₹ 1021.73 in the invoice dated 02.12.2017 after giving a discount of 17.05% on the base price of ₹ 1231/- per square meter (discount of ₹ 6249/- was given on the total invoice value of ₹ 36,646.87 @ 17.05%) Thus, it is apparent that the Respondent did not increase the per unit base price (excluding GST) of the product, which was & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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