AI Drafter 
TaxTMI 
TaxTMI 
2020 (2) TMI 1654
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.... 10" supplied by the Respondent. The above Applicant also alleged that thee Respondent did not reduce the selling price of the Power Bank "Portronics Power Slice 10", when the GST rate was reduced from 28% to 18% w.e.f. 01.01.2019, vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018 and the price of the product remained the same at Rs. 1349/- and thus, the benefit of reduction in the GST rate was not passed on to the recipients by way of commensurate reduction in the price. The Applicant No. 1 along with his complaint also submitted copies of screen shots captured on the website "www.portronics.com" 2. The above reference was examined by the Standing Committee on Anti-profiteering and vide minutes of the meeting dated 22.03.2019 it had forwarded the same to the DGAP for detailed investigation in terms of Rule 129 of the above Rules. 3. The DGAP on receipt of the application on 27.03.2019 issued a Notice dated 09.04.2019 under Rule 129 of the Rules calling upon the Respondent to submit his reply as to whether he admitted that the benefit of reduction in the GST rate w.e.f. 01.01.2019, had not been passed on to his recipients by way of commensurate reduction in pr....
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....8 to March, 2019 for all the GST registrations in India. b) Details of invoice-wise outward taxable supplies during the period November, 2018 to March, 2019. c) Price Lists (Pre and Post 01.01.2019) for all the products, specifically indicating the SKUs impacted by GST rate reduction w.e.f. 01.01.2019. d) Sample copies of invoices, pre and post 01.01.2019. 10. The Respondent, vide e-mail dated 08.08.2019 submitted that all the data submitted by him was to be treated as confidential in terms of Rule 130 of the Rules. 11. In his Report, the DGAP has stated that the main issues to be examined were whether the rate of GST on the products supplied by the Respondent was reduced w.e.f. 01.01.2019 and if so, whether the Respondent passed on the benefit of such reduction in GST rate to the recipients, in terms of Section 171 of the CGST Act, 2017. 12. The DGAP has observed that the Central Government, on the recommendation of the GST Council, had reduced the GST rate on the "Power Bank" from 28% to 18% w.e.f. 01.01.2019, vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018 and before enquiring into the allegation of profiteering, it was impor....
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....38215.09 4 04 Chandigarh 19343.97 5 05 Uttarakhand 19599.6 6 06 Haryana 17857.16 7 07 Delhi 80227.15 8 08 Rajasthan 8503.732 9 09 Uttar Pradesh 69988.00 10 10 Bihar 8167.067 11 11 Sikkim 907.8527 12 12 Arunachal Pradesh 161.7085 13 13 Nagaland 454.6673 14 14 Manipur 855.7959 15 15 Mizoram 1515.229 16 16 Tripura 321.5581 17 18 Assam 2159.961 18 19 West Bengal 14841.95 19 20 Jharkhand 3615.247 20 21 Orissa 7614.88 21 22 Chhattisgarh 4888.434 22 23 Madhya Pradesh 5916.688 23 24 Gujarat 18332.98 24 27 Maharashtra 77746.76 25 29 Karnataka 28305.28 26 30 Goa 2089.513 27 32 Kerala 7270.249 28 33 Tamil Nadu 33756.83 29 34 Pondicherry 823.3465 30 35 Andaman & Nicobar Islands 155.0828 31 36 Telangana 22463.75 32 37 Andhra Pradesh (New) 15927.93 Grand Total 521965 16. The DGAP further stated that the allegation of profiteering against the Res....
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....ollowing issues in his submissions, viz.:- (i) The DGAP has not considered various facts prevailing in the electronic industries where prices of goods were driven by fast changing technology, demand and supply and terms of sale like cash, debit/credit card and credits. However, in this case, the Respondent supplied 26 models/SKU of power banks and base price & profiteering computation has been done separately for each model/SKU. Hence, the said contention of the Respondent was not relevant. (ii) Regarding the Respondent's contention that the location of sale was also important as the price in a mall may vary than the price at warehouse, the DGAP has clarified that at time of furnishing data and records for the investigation, the Respondent had provided data for only 5 types of sale viz. Exports, Inter-state, Intra-state, Normal sale & Stock transfer and that the Respondent had not submitted the data relating to the warehouse sales through mall etc. separately and thus the profiteering has been calculated on the basis of data supplied by the Respondent during the investigation. 21. In response to the above Report of the DGAP, the Respondent filed his next wr....
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....considered at the time when the issues relating to computation of profiteering were to be finalised and the amount of profiteering, if any, was to be determined. 24. Clarification was sought from the DGAP on the Respondent's submissions dated 13.11.2019 and 19.11.2019. The DGAP, vide his supplementary Report dated 02.12.2019 has mentioned that in respect of the Respondent's submission dated 13.11.2019, the profiteering has been calculated only for those SKUs where the Respondent has increased the base prices after GST rate reduction. Further, the Respondent supplied 26 models/SKU of power banks and base prices & profiteering computation has been done separately for each model/SKU. The Respondent had not submitted the information/ details of the data relating to his warehouse/office sale and mall sales etc. and at the time of the investigation and the Respondent had provided data for only 5 types of sale viz. Exports, Inter-state, Intrastate, Normal sale & Stock transfer. Thus, the profiteering has been calculated on the basis of data supplied by the Respondent during the investigation. So the contention of the Respondent was not relevant. The DGAP, in respect of the Resp....
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....f segment/location wise sales data submitted by the Respondent has been analysed, and it appeared that the profiteered amount may vary if the same is determined segment wise. 27. We have carefully considered all the Reports filed by the DGAP, submissions of the Respondent and other material placed on record and it is revealed that the Respondent did not submit the supply chain wise data to the DGAP during the period of investigation. He has also accepted it during the hearings before this Authority and stated that he had not supplied supply chain wise data. However, the Respondent vide his submissions dated 06.12.2019 has furnished the invoices of sale from different locations/segments along with detailed segment wise invoice details in excel sheets before this Authority. The DGAP, after examining the same has reported vide his supplementary Report dated 23.12.2019 that the fresh set of segment/location wise (or in other words supply channel wise) sales data submitted by the Respondent during the hearings before this Authority has been analysed, and that the profiteered amount may vary if the same was determined segment-wise. 28. In such circumstances, we are of the opinion t....
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....======== Document 1 Table-'A' Pre 01.01.2019 Period Post 01.01.2019 Notification No. A Product Description B Invoice No. C DL0010SI12190023 24/2018-Central Tax (Rate) dated 31.12.2018 Por 694 (Power Bank) DL002S1011900008 Invoice Date D 06.12.2018 04.01.2019 Declared Price E 995.43 1101.70 Discount Offered F 0 0 Base Price excluding G=E-F 995.43 1101.70 GST GST rate charged H 28 18 I=G*H 278.72 198.30 GST Amount Increase in Base Price/ Profiteering excluding K GST GST @ 18% L = K*18% Amount of Profiteering 1101.70 995.43 = 106.27 - 19.12 (Difference in selling Price) M = K+L 125.39 Document 2 Period Notification No. Product Description Invoice No. Invoice Date Declared Price Place of Sale Invoice Series Pre 01.01.2019 Post 01.01.2019 24/2018-Central Tax (Rate) dated 31.12.2018 POR 694 (Power Bank) DL0010SI12190023 06.12.2018 995.43 Wazirpur Corporate Office DL001- Supply made from Wazirpur corporate office to distributors, corporates, retailers or through E- commerce i....