Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the benefit of additional ITC to the tune of 12.36% of the turnover, accrued to the Respondent was required to be passed on by the Respondent to eligible recipients. Provisions of Section 171 of the Act have been contravened by the Respondent. in as much as the benefit of additional ITC on the demand raised by the Respondent during the post-GST period from 01.07.2017 to 30.04.2020, has not been commensurately passed on to the recipients. The authority found that the Respondent has profiteered by an amount of Rs 40.94.480/- and the same shall be refunded along with interest @18%, in accordance with the provisions of Rule 133 (3) (b) of the CGST Rules. 2017.

Held that:- The Hon’ble Anti-Profiteering Authority directed the amount the profiteering amount along with the interest @ 18% shall be paid/passed on by the Respondent within a period of 3 months. The respondent has committed an offence under Section 171 (3A) and therefore, he is liable for imposition of penalty under the provisions of the above Section. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 whereas the period during which violation has occurred is from 01.07.2017 to 30 04.2020, therefore, he is liable for imposition of penalty under the provisions of the above Section and notice be issued to him.