https://www.taxtmi.com/caselaws?id=785008 Whether respondent violated Section 171 CGST by not passing on GST rate reduction: Section 171 imposes an affirmative obligation to pass tax-rate reductions by way of commensurate reduction in prices; compliance with State cinema regulatory ceilings is a procedural constraint and does not excuse non-passing. Outcome: contravention established and profiteering quantified at Rs. 11,88,482/-. Whether GST remitted to Government can be excluded from profiteered amount: the statutory scheme requires reduction in the all-inclusive price to benefit the consumer; remittance of GST to the exchequer does not negate consumer detriment. Outcome: GST component is included in the profiteered amount. Interest and penalty: interest under Rule 133(3)(c) is prospective from 28.06.2019 and was prorated for three days but waived in exercise of discretion; Section 171(3A) penalty not imposable as it came into force after the violation period. Outcome: interest waived; no penalty. en-us Wed, 07 Jan 2026 00:00:00 +0530 Thu, 15 Jan 2026 08:41:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785008 Whether respondent violated Section 171 CGST by not passing on GST rate reduction: Section 171 imposes an affirmative obligation to pass tax-rate reductions by way of commensurate reduction in prices; compliance with State cinema regulatory ceilings is a procedural constraint and does not excuse non-passing. Outcome: contravention established and profiteering quantified at Rs. 11,88,482/-. Whether GST remitted to Government can be excluded from profiteered amount: the statutory scheme requires reduction in the all-inclusive price to benefit the consumer; remittance of GST to the exchequer does not negate consumer detriment. Outcome: GST component is included in the profiteered amount. Interest and penalty: interest under Rule 133(3)(c) is prospective from 28.06.2019 and was prorated for three days but waived in exercise of discretion; Section 171(3A) penalty not imposable as it came into force after the violation period. Outcome: interest waived; no penalty. Case-Laws GST Wed, 07 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785008