GST Anti-Profiteering Clarification: 18% Interest Applies Prospectively from April 1, 2020
The Goods and Services Tax (GST) Appellate Tribunal (GSTAT) has ruled that the 18% interest on anti-profiteering amounts applies prospectively from April 1, 2020. This decision was made in a case where a company was accused of profiteering by not passing on the benefit of GST rate reduction on sanitary pads from 12% to nil for the period July 27, 2018, to October 31, 2018.
Key Highlights:
Prospective Application: The 18% interest provision applies only to cases arising after June 28, 2019, and is not applicable retrospectively to profiteering occurring before the amendment.
No Interest or Penalty: In this case, the tribunal refrained from imposing interest or penalty, despite confirming the profiteered amount of ₹6,88,770.
Deposit of Profiteered Amount: The respondent was directed to deposit the profiteered amount into the Consumer Welfare Fund as per Section 57 of the CGST Act.
Implications:
– Businesses need to be aware of the prospective application of the 18% interest provision on anti-profiteering amounts.
– The decision highlights the importance of complying with GST regulations and passing on benefits to consumers.
– The ruling may have implications for businesses that have faced similar situations in the past.
Sudheendra Kumar ( Mobile /WhatsApp: 91-9820088394)
Follow us on LinkedIn:
https://www.linkedin.com/company/intellexconsulting
https://www.linkedin.com/company/intellexcfo-com/
https://www.linkedin.com/company/venture-streets/
https://www.linkedin.com/company/growmoreloans-com/
https://www.linkedin.com/company/growmorfranchisees/
Websites:
www.IntellexCFO.com ,
www.StartupStreets.com,
www.GrowMoreLoans.com,
www.GrowMoreFranchisees.com,
www.CreditMoneyFinance.com
