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2020 (3) TMI 612 - NAPA - GSTProfiteering - Services by way of admission to exhibition of cinematograph films where price of admission ticket was above one hundred rupees” - Rate of GST reduced from 28% to 18% - Services by way of admission to exhibition of cinematograph films where price of admission ticket was one hundred rupees or less - allegation that the benefit of reduction in the rate of GST not passed on - contravention of section 171 of CGST Act - penalty - HELD THAT:- It is clear from the narration of the facts mentioned that the Respondent has indulged in profiteering in violation of the provisions of Section 171 of the CGST Act, 2017 and has not passed on the benefit of reduction in the rates of tax as per the Notification No. 27/2018- Central Tax (Rate) dated 31.12.2018 in respect of the above services to his customers and therefore, he is liable for action under Rule 133 of the CGST Rules, 2017. Accordingly, the profiteered amount is determined as ₹ 3,90,272/- which includes an amount of ₹ 14/- including the GST which the Respondent has profiteered in respect of the Applicant No.1 and ₹ 3,90,258/- in respect of the other recipients which also includes the GST on the said profiteered amount, as per the provisions of Rule 133 (1) of the CGST Rules, 2017. Accordingly, the Respondent is directed to reduce the sale prices of his admission tickets immediately commensurate to the reduction in the rates of tax as were notified on 31.12.2018 and pass on the benefit of reduction in the rates of tax to his customers. Penalty - HELD THAT:- It is evident from the above that the Respondent has denied the benefit of rate reductions in the GST to his customers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus profiteered as per the explanation attached to Section 171 of the above Act. Therefore, he is apparently liable for imposition of penalty under Section 171 (3A) of the CGST Act, 2017 - Therefore, a Show Cause Notice be issued to him directing him to explain why the penalty prescribed under the above sub-Section should not be imposed on him.
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