The National Anti-Profiteering Authority (NAA) in its recent order adjudged that though M/s PVR Ltd. is guilty of profiteering but penalty cannot be imposed for denying the benefit of Input Tax Credit (ITC) to ticket Buyers as no penalty provisions existed when the ITC was denied.
Facts of the Case:
The Applicant of the case, Mr. Srinivas, alleged profiteering against the respondent, M/s PVR Limited and submitted that the respondent had not passed on the benefit of reduction in the GST rate from 28% to 18%, as it sold tickets of the value of Rs. 250, Rs. 200, 150 at the same price prior to and after the GST rate reduction.
Comments of DGAP:
The Director General of Anti profiteering (DGAP) stated that the Central Government, on the recommendation of the GST Council, had reduced the GST rate on “Services by way of admission to an exhibition of cinematograph films where the price of admission ticket was above one hundred rupees” from 28% to 18% and “Services by way of admission to an exhibition of cinematograph films where the price of admission ticket was one hundred rupees or less” from 18% to 12% w.e.f. 01.01.2019, vide Notification No. 27/2018- Central Tax (Rate) dated 31.12.2018.
Order of NAA:
The National Anti-Profiteering Authority vide its order dated 24.08.2020 held that the Respondent has contravened the provisions of Section 171 (1) of the CGST Act, 2017.
However, since, the penalty prescribed under Section 171 (3A) of the CGST Act, 2017 for violation of the above provisions has come into force w.e.f. 01.01.2020 and the infringement pertains to the period from 01.01.2019 to 06.01.2019 and the Respondent has also deposited the profiteered amount along with the interest therefore, no penalty is proposed to be imposed on the Respondent.
READ ORDER:
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