Commensurate GST price reduction for cinema tickets overrides base-price increases where suppliers cannot prove benefits reached viewers.

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Full Text of the Document

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....Section 171 of the CGST Act requires suppliers to pass any GST-rate reduction to recipients through a commensurate reduction in prices. For cinema admission tickets, increased base prices and general commercial pricing considerations do not displace that obligation. A supplier must provide cogent evidence that the tax benefit reached viewers; failure to challenge the DGAP methodology or substantiate price increases supports a finding of non-passing. Non-reduction of first- and second-class ticket prices after the rate cut constituted contravention, requiring deposit of the profiteered amount with interest in consumer welfare funds; no penalty was imposed.....