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 4.80% of the turnover, during the post GST period from 01.07.2017 to 31.03.2019. The Respondent had to pass on the additional ITC of Rs. 16,49,897/- accrued to him during the period from 01.07.2017 to 31.03.2019 by way of commensurate reduction in prices under Section 171 of the Act. Provisions of Section 171 of the Act have been contravened by the Respondent. The authority found that the benefit of additional ITC of 4.80% of the turnover has accrued to the Respondent, which was required to be passed on to the recipients.

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. 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 31.03.2019, when the Respondent had committed the above violation and hence the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.