The National Anti-Profiteering Authority found that Dev Snacks Cheriyela is guilty of wrongly charging 5% GST on unregistered brands, however, no penalty imposed.
The Applicant has alleged that the Respondent had not passed on to his recipients, the benefit of reduction in the rate of tax of GST with effect from November 27, 2017 from 12% to 5% in respect of his supplies of Snacks (HSN Code 21069099), as per the provisions of Section 171 (1) of the CGST Act, 2017.
The DGAP reported that the Respondent had denied the benefit of GST rate reduction to his recipients pertaining to the period w.e.f. November 27, 2017, to December 31, 2017, and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the CGST Act.
The Authority headed by the Chairman, Dr. B.N.Sharma held that the Respondent has wrongly charged 5% GST on his unregistered brand “Dev Snacks” HSN Code 21069099 from his buyers and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017.
“Since, no penalty provisions were in existence between the period w.e.f. 27.11.2017 to 31.12.2017 when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171(3A) can not be imposed on the Respondent retrospectively. Accordingly, the notice dated 11.03.2019 issued to the Respondent for the imposition of penalty under Section 122 (1) (i) is hereby withdrawn and the present penalty proceedings launched against him are accordingly dropped,” the NAA said.
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