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Non Reduction of Price of ‘Fly Ash Blocks’ Despite GST Rate Reduction was Profiteering: NAA

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The National Anti-Profiteering Authority (NAA) held Litecon Industry to be guilty of not passing Goods and Service Tax (GST) benefits to consumers.

Where applicant alleged profiteering by respondent in respect of ‘Fly Ash Blocks’ supplied by respondent stating that respondent did not pass on benefit of GST rate reduction from 12 per cent to 5 per cent with effect from 1-1-2019 vide Notification No. 24/2018-Central Tax (Rate), dated 31-12-2018 and instead increased unit base price, it was held that respondent had denied benefit of rate reduction of GST to its recipient and, thus, had resorted to profiteering in contravention of section 171 and was liable for imposition of penalty

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