The National Anti-Profiteering Authority (NAA) recently gave its verdict saying that if the discount rate remains the same pre and post-GST reduction then it is not subject to profiteering.
Here is the case of a reduction in the GST rate on Ceramics Glazed Wall Tiles, Printex Crema from 28% to 18% (valid under Notification dated 14 Nov 2017 by Central Government).
The petitioner Kerala State Level Screening Committee on Anti-Profiteering referred the case to the Standing Committee on Anti-profiteering
As proof here the petitioner presented two invoices one created before the GST rate reduction and one after the GST rate reduction
The jury consists of Chairman, B.N. Sharma, and Technical Members, J.C. Chauhan, R. Bhagyadevi, and Amand Shah rested the case saying that ‘if the post discount rate is the same in pre and post GST rate reduction then it cannot be considered as the subject of profiteering’.
Clearly, the allegation is not proven against the respondent (under section 171 of the Central Goods and Service Tax Act 2017). The case filed by the petitioner is considered invalid on the grounds that there is no change in the base price of the product after pre and post GST rate reduction and therefore the same has been dismissed by the observing authority.
With the implementation of GST, it has made tax paying easier and susceptible to even minor changes exempting error of omission as receipts are required for everything.