Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that despite the rate reduction in GST rate on “Services by way of admission to exhibition of cinematography films, it was clear that the base prices of the admission tickets were indeed increased, as a result of which the benefit of reduction in GST rate from 28% to 18% (w.e.f. 01.01.2019), was not passed on to the recipients by way of commensurate reduction in prices charged (including lower GST @ 18%). The total amount of profiteering was 97,02,945/-. The Authority observed that the Respondent has been profiteering by way of increasing the base prices of the tickets (Services) by not reducing the selling price of the tickets (Services) commensurately in the regular category, despite the rate reduction in GST rate. The Respondent has denied the benefit of rate reduction to his customers/recipients in contravention of the provisions of Section 171 (1) of the Act and resorted to profiteering and hence, committed an offence under Section 171 (3A).

Held that:- The Hon’ble Anti-Profiteering Authority directed that the respondent is liable for the imposition of a penalty. Accordingly, notice be issued to him directing him to explain why the penalty under Section 171 (3A) of the Act should not be imposed on him for the profiteered amount collected from 01.01.2020 to 30.04.2020. The Authority directed the jurisdictional Commissioners of CGST/SGST to monitor the Order. A Report in compliance of this Order shall be submitted to this Authority by the DGAP within a period of 4 months. The Authority further directed the DGAP to reinvestigate the matter relating to 'Exception Category' admission tickets.