Kerala State Screening Committee on Anti-profiteering v. Impact Clothing Co

The Kerala State Screening Committee on Anti-Profiteering has alleged profiteering by respondent on supply of ready made garments by not passing on benefit of reduction in rate of tax at time of implementation of GST with effect from 1-7-2017. The DGAP (Directorate General of Anti-Profiteering) has noted that there was increase in the rate of tax on the above product with effect from 1-7-2017 and that the rate of tax in the Post-GST era has been increased from 2 per cent to 5 per cent .Moreover, the pre-GST and post-GST base prices have remained the same. Therefore, it is held by the National Anti-Profiteering Authority (NAA) that the allegation of profiteering is not sustainable in terms of section 171 of the CGST Act, 2017