NAA finds Win Win Appliances guilty of not passing GST rate cut benefits to its customers, no penalty imposed [Read Order]

NAA - Win Win Appliances - GST rate - customers - penalty - Taxscan

The National Anti-Profiteering Authority (NAA) found the respondent, Win Win Appliances guilty of not passing GST rate cut benefits to its customers.

The applicant has alleged that the Respondent, Win Win Appliances  had not passed on to his recipients the benefit of reduction in the rate of tax of GST w.e.f. November 15, 2017 from 28% to 18% in respect of his supplies of “Matchless Plus TTWG Grinder”, 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 amounting to Rs.1,20,194 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 not passed on the benefit of reduction in GST rate from 28% to 18% on the above products and the respondent has violated the Section 171(1) of the CGST Act.

However, the NAA did not impose the penalty on the grounds that since, no penalty provisions were in existence when the Respondent had violated the provisions of Section 171(1) the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.

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