The National Anti-Profiteering Authority (NAA), has findsM/s Sri Laxmi Kala Mandir 70MM Theatre guilty of anti-profiteering since not passed on the benefit of reduction in GST rate.
The application was filed against M/s Sri Laxmi Kala Mandir 70MM Theatre, alleging that the respondent has not passed on the benefit of reduction in the GST rate after the introduction of GST.
The applicant submitted that the respondent theatre has not pass on the benefit of reduction in the GST rate on the ‘services by way of admission to exhibition of cinematograph films where price of admission ticket was one hundred rupees or less’ from 18% to 12% , and had increased the base price of the movie ticket to maintain the same cum-tax selling price as were in the pre-rate reduction period despite the reduction in the rate of tax.
The DGAP concluded that basically there were three categories of tickets, Balcony, 1st class and Third-class tickets sold by the respondent during pre as well as post rate reduction period and the cum-tax price of these three categories of tickets remained same after the rate reduction which resulted in profiteering in terms of section 171 of the CGST Act 2017.
The Authority, based on the DGAP report observed that the respondent has profiteered by way of increasing the base price of his supplies of the three categories of movie tickets by maintaining the same selling prices of the movie admission tickets despite the reduction in GST rate on ‘services by way of admission to exhibition of cinematograph films where price of admission ticket is one hundred rupees or less’ from 18% to 12%.
The Coram of Mr. Amand Shah, Chairman, Mr. Pramod Kumar Singh, Technical Member and Mr. Hitesh Shah Technical Memberhas held “the profiteering is determined as Rs 1,31,754/- as per the provisions of section 171 read with Rule 133 (1) of the CGST Rules 2017 and accordingly the respondent is directed to commensurately reduce the prices of the three categories of movie tickets in line with the provisions of section 171 (1) read with Rule 133 (3) (a) of the CGST Rules 2017”.
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