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2019 (1) TMI 21 - NAPA - GSTProfiteering - supply of the product “Paint (AP Apex Classic WT 10 LT (HSN Code 3209)) - benefit of reduction in the rate of tax of GST at the time of implementation of the GST - contravention of provisions of Section 171 of the CGST Act, 2017 - Held that:- It is evident that the Respondent has increased the base price of the product from ₹ 1855.05/- to ₹ 1859.55/- resulting in an increase of ₹ 4.50/-. In this context, it is apparent that the post-GST price before discount has been reduced from ₹ 2159/- to ₹ 1927/-. Also, the discount offered has been reduced from ₹ 75.57/- to ₹ 67.45/- i.e. by ₹ 8.12/- and hence post-GST, there is increase in the base price of ₹ 4.50/-. The increase in the base price is on account of the reduction in the discount. It is also revealed that the reduction in discount doesn't amount to profiteering as the same was offered from his profit margin by the Respondent and doesn't not form part of the base price and therefore, the Respondent cannot be held guilty under Section 171 of the Act. Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 - application dismissed.
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