DGAP Vs Urban Essence (Subway Franchisee)
Date: August 5, 2025
Subject Matter
Profiteering by Subway Franchisee Confirmed, Refund to Consumer Welfare Fund Ordered
Summary
This proceeding under Section 171 of the CGST Act examined whether M/s. Urban Essence, a franchisee of Subway, engaged in profiteering by not passing on the benefit of a GST rate reduction on restaurant services from 18% to 5%, effective November 15,…
FULL TEXT OF THE JUDGMENT/ORDER OF GSTAT HIGH COURT In this proceeding under Section 171 of the Central Goods and Services Tax Act, 2017, hereinafter referred as CGST Act, for brevity, the following mixed questions of law and fact arousefor determination:- I. Whether the Respondent, i.e. M/s. Urban Essence, a franchisee of M/s. Subway Ltd profiteered an amount of ₹5,47,005/- only, by not pas…