The National Anti-profiteering Authority (NAA), in its first order, has dismissed a complaint against a Bareilly-based Honda car dealer by holding that it did not contravene the anti-profiteering provisions of the Central Goods and Services Tax Act (CGST).
The complainant approached the authority stating that the Honda Car dealer has not passed the benefit of reduction in tax rate under the new GST regime. On December, DG Safeguards had served notice initiation of the investigation to the car dealer.
A 13-page order issued by NAA’s Chairman B N Sharma and other members stated that “We find that the respondent (Honda car dealer) has given details of all the basic components of the price of the car purchased by the applicant .. .and benefit of Rs 10,550 on account of reduction of tax by about 2 per cent viz. from 31.254 per cent (pre GST) to 29 per cent (post GST) has already been passed on to the applicant and the amount of Rs 10,550 is inclusive of the ITC (input tax credit) … therefore, no additional benefit on account of ITC is required to be paid by the respondent.”
“The respondent (Honda car dealer) has not contravened the provisions of Section 171 of the CGST Act, 2017, and accordingly we do not find any merit in the application of Dinesh Mohan Bharadwaj filed under Rule 128 of the CGST Tax Rules, 2017 and we accordingly dismiss the same,” it added.
Section 171 of the CGST Act provides that any reduction in the rate of tax on supply of goods or services, or the benefit of input tax credit, shall be passed on to the recipient (consumer) by way of a commensurate reduction in prices.
Under GST, a three-tier structure is there to look into anti-profiteering complaints: state-level screening committees for complaints of local nature or a national-level standing committee for profiteering at all-India level.
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