Profiteering calculation methodology: Reinvestigation ordered to verify post-GST purchase data and pre-GST rate comparisons, matter remitted.

Decision directs re-investigation of profiteering calculation methodology, requiring verification of the respondents submitted post-GST purchase data and the applicable pre-GST rates used for comparison; the DGAP must reassess whether GST availed on actual goods and services in the post-GST period corresponds with ITC computations using pre-GST applicable rates, following principles referenced from prior judicial authority. The matter is remitted to DGAP for re-investigation and further compliance with procedural requirements, and the present proceeding is disposed of pending that re-investigation.

---

---

Issues: Whether the methodology and computation of alleged profiteering by DGAP require re-examination and whether the matter should be remitted to DGAP for re-investigation under Rule 133(4) of the Goods and Services Tax Act, 2017.

Analysis: The DGAP performed a comparative exercise of pre-GST and post-GST availability of credit and derived a percentage increase in ITC availability which was applied to post-GST purchases to compute alleged savings and resultant profiteering, and additionally applied GST on the profiteered amount. The respondent contested the methodology, relying on the principle that comparisons must be between identical goods and services (a same-basket comparison) and produced item-wise post-GST purchase data and pre-GST applicable rates for verification. The respondent also challenged the addition of GST on the benefit amount. Applying the legal framework concerning Section 171 (obligation to pass on benefit) and procedural scope of Rule 133(4), the factual comparability of pre- and post-GST purchase items and the respondent's production of itemised data require verification before a final profiteering computation can be sustained.

Conclusion: Re-investigation by DGAP is directed under Rule 133(4) of the Goods and Services Tax Act, 2017 to verify the respondent's item-wise post-GST purchase data, rework the ratio of ITC in the pre-GST period, compare it with the post-GST period on a same-basket basis, and recompute any profiteering; the respondent shall furnish additional documents or information as required by DGAP.

---