2026-VIL-01-GSTAT-DEL-NAPA
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SGST Tribunal

GST – Anti-Profiteering, Commensurate Reduction in Prices - DGAP report alleged that Respondents contravened Section 171 of the CGST Act by not passing on the benefit of reduction in GST rates on cinema tickets from 01.01.2019 - Whether the Respondent profiteered by not reducing ticket prices commensurately after the GST rate cut – HELD - The Respondent increased or maintained the base prices instead of reducing the gross ticket prices, thereby retaining the tax benefit - The Respondent's arguments that ticket prices were regulated under the Telangana Cinemas Act and Government Orders, and that the profiteering should be computed movie-wise, and GST component should be excluded as it was remitted to the Government, are rejected - The DGAP's methodology of comparing the pre-reduction all-inclusive price with the post-reduction base price to be rational and workable - the Respondent had the statutory option under Section 34 of CGST Act to issue credit notes for retrospective price adjustment and pass-through the benefit, but failed to do so; mere remittance of GST does not extinguish the supplier's liability to disgorge the total excess collection to identifiable recipients or, in their absence, the Consumer Welfare Fund - The Respondent is directed to deposit the profiteered amount in the Central and State Consumer Welfare Funds within 30 days. No interest was payable for the period prior to 28.06.2019 when the interest provision was introduced prospectively. No penalty under Section 171(3A) was applicable as it post-dated the contravention period – Ordered accordingly
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