Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the Respondent has been benefited with additional ITC of 4.25% of the taxable turnover and the same was required to be passed on to the recipients. Thus, the Respondent has contravened the provisions of Section 171 of the Act, in as much as the additional benefit of ITC @4.25% of the base puce received by the Respondent. The authority found that the Respondent has benefited from the additional ITC to the extent of 4 25% of the turnover during the period from July 2017 to December 2019.

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 and hence, was not in force during the period of investigation i.e. from 01.07.2017 to 31.12.2019, when the Respondent had committed the above violation and hence the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.