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NAA finds Pinky Sales guilty for not passing benefit of GST Reduction on Footwear to its customers [Read Order]

NAA - GST - footwear - Taxscan

The National Anti-Profiteering Authority (NAA) has found M/s Pinky Sales guilty of profiteering by not reducing prices in respect of the supply of footwear despite reduction in the goods and services tax (GST) rate from 18% to 5%.

However, the NAA decided not to impose any penalty as the penalty prescribed under Section 171 (3A) of the CGST Act, 2017 for violation of the above provisions has come into force with effect from January 1, 2020, and the infringement pertains to July 27, 2018.

An application was filed by the Applicant against the Respondent, M/s Pinky Sales alleging profiteering in respect of the supply of footwear despite reduction in the goods and services tax (GST) rate from 18% to 5%.

The DGAP also reported that the respondent has denied the benefit of rate reduction to its consumers amounting to Rs.6,55,307 pertaining to the period of  July 27, 2018 to November 30, 2018.

The Authority headed by Dr. B.N. Sharma said that the Respondent had not passed on the benefit of rate reduction when the rate of GST was reduced from 18% to 5% on footwear, as per the provisions of Section 171 (1) of the CGST Act, 2017 and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017.

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