Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129. The DGAP reported that the allegation of profiteering by way of increasing the base prices of the tickets (Services) by not reducing the selling price of the tickets (Services) commensurately, despite the rate reduction in GST rate on “Services by way of admission to exhibition of cinematograph films” appeared to be correct. The Authority observed that the respondent has resorted to profiteering by way of either increasing the base prices of the service while maintaining the same selling prices or by way of not reducing the selling prices of the service commensurately, despite a reduction in GST rate.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to reduce the prices of his tickets, keeping in view the reduction in the rate of tax so that the benefit is passed on to the recipients. The Respondent is also directed to deposit the profiteered amount of Rs. 42,60,104/- along with the interest to be calculated @ 18%. Since the recipients, in this case, are not identifiable, the Respondent is directed to deposit the amount of profiteering in two equal parts, in the Central Consumer Welfare Fund (CWF) and in the Telangana State Consumer Welfare Fund along with interest @18%. The above amount shall be deposited within a period of 3 months The Respondent is liable for the imposition of penalty under the provisions of the above Section. Accordingly, a notice be issued to him directing him to explain why the penalty prescribed under Section 171 (3A) of the above Act read with Rule 133 (3) (d) of the CGST Rules, 2017 should not be imposed on him.