The National Anti-Profiteering Authority (NAA) held that the unchanged base price of the product despite a change in the tax rate is not violative of Section 171 of Central Goods and Service Tax (CGST) Act, 2017.
In the case of Rahul Sharma and DGAP vs. M/s Bajaj Electronics Limited, it was observed that the base price of the product was kept unchanged by the respondent despite the reduction in Tax Rate after coming up with the Notification 18/2018.
The petitioner namely Rahul Sharma filed a complaint pertaining to the products where prices have not been brought down by the M/s Bajaj Electronics Limited (manufacturers or suppliers) in line with the tax cuts announced by the top decision-making body of the Goods and Services Tax namely the Goods and Service Tax (GST) Council.
As a consequence, the applicant contended that the respondent has violated Section 171 of the Central Goods and Service Tax (CGST) Act which pertains to the reduction in the tax rate in the goods and service or any benefit of the Input Tax Credit (ITC) ought to be passed to the recipient of the service.
The issue raised in this case was whether the benefit of the tax rate or Input Tax Credit (ITC) is to be passed on to the consumers or not?
The National Anti-Profiteering Authority (NAA) consisting of a Chairman, B.N. Sharma; Technical Members J.C. Chauhan and Amand Shah held that the base price of the product was kept unchanged by the respondent despite the reduction in Tax Rate after coming up with the Notification 18/2018 and thus it is not violative of Section 171 of Central Goods and Service Tax (CGST) Act.
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