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No Profiteering if Base Price of Product Remain Same After GST Rate Reduction

Anti-Profiteering has issued Order No. 13/2019 dated 01st March, 2019 in case of Kerala State Screening Committee on Anti-profiteering (Applicant) Vs. M/s Velbon Vitrified Tiles Pvt. Ltd (Respondent). Fact of the case

  • The applicant had stated in their complaint that the respondent had resorted to profiteering in respect of supply of “Ceramic Vitrified Tiles” on the ground that the respondent had not passing on the benefit of reduction in the rate of tax granted, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. The Applicant had submitted two invoices issued by the respondent, invoice no. 0651 dated 24.10.2017 issued in the pre-GST rate reduction period and invoice no. 0860 dated 15.12.2017 issued in the post-GST era.
NAA observed that
  • DGAP in his Report has stated that there was no increase in the per unit taxable amount (excluding GST) of the product “Ceramic Vitrified Tiles” in the post-GST rate reduction period as compared to the pre-GST rate reduction period and therefore he had recommended that the provisions of Section 171(1) of the CGST Act, 2017, relating to profiteering, had not been contravened.
Description of the Product Pre - Revision Post Revision Difference
Invoice no./date Tax Rate Base price box (excluding GST) Invoice no./date Tax Rate Base price box (excluding GST) _
Ceramic Vitrified Tiles (HSN Code 69072100) 0651 24th oct’17 28% 232.50/- 0860 15th dec’17 18% 232.50 _
NAA Held Authority agrees with the DGAP’s Report and accordingly, holds that the allegation of profiteering is not sustainable. Source:


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