2026-VIL-28-GSTAT-DEL-NAPA
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SGST Tribunal

GST - Anti-profiteering - Failure to pass on the benefit of reduction in GST rate on cinema admission tickets from 18% to 12% w.e.f. 01.01.2019 - Whether a registered person engaged in providing cinema admission services, who increases base prices following a GST rate reduction while maintaining the same cumulative tax-inclusive price, violates Section 171(1) of the CGST Act, 2017 and constitutes profiteering notwithstanding any permission granted by the High Court to collect proposed fares subject to regulatory compliance – HELD – The Respondent has violated Section 171(1) of the CGST Act, 2017, which mandates that any reduction in the rate of tax on supply of goods or services must be passed on to the recipient by way of commensurate reduction in prices. The statutory obligation under Section 171 is absolute and cannot be overridden by conditional permissions granted by the High Court, as such permissions were not unconditional and were subject to compliance with the regulatory framework governing ticket pricing - The intention of the Government is that the benefit of tax rate reduction should immediately be passed on to the end-user by way of reduction in prices commensurate with the reduction in tax rate. By increasing base prices while maintaining the same cum-tax selling price, the Respondent has defeated the statutory mandate and prevented consumers from benefiting from the government's decision to lower the tax rate - Since recipients are not identifiable, the Respondent shall deposit 50% in the Central Consumer Welfare Fund and 50% in the State Consumer Welfare Fund. The Respondent shall pay interest at 18% per annum on the total profiteered amount from 28.06.2019 – Ordered accordingly
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