GSTAT passes order against Subway franchisee for not passing rate cut benefit to customer
New Delhi, Aug 13 (PTI) In its first order in profiteering case, the newly constituted GST Appellate Tribunal (GSTAT) has held Urban Essence, a franchisee of Subway Ltd, guilty of not passing GST rate cut benefit of Rs.5.47 lakh.
The Goods and Services Tax Appellate Authority (GSTAT) order dated August 5 upheld the Directorate General of Anti-profiteering (DGAP) report that Urban Essence has profiteered to the extent of Rs.5.47 lakh by not passing on a commensurate reduction of the prices of food products to customers.
The order in this regard was passed by GSTAT President Justice (Retd) Sanjaya Kumar Mishra.
The appellate tribunal directed the Pune-based entity to deposit a sum of Rs.5,45,005 along with an 18 per cent interest from November 15, 2017 and deposit tha same in the consumer welfare fund in Maharashtra within 3 months.
The case pertained to a customer complaint against Urban Essence for not passing the benefit of reduction of GST rate, on restaurant services, from 18 per cent to 5 per cent with effect from November 15, 2017.
The GSTAT also looked into the issue of whether the entity was eligible to claim input tax credit (ITC) on some invoices.
The DGAP, which investigated the case, had covered the period from November 15, 2017 to October 31, 2019, to check whether the GST rate cut benefits were passed to consumers.
On December 1, 2022, the Competition Commission of India (CCI) was given the responsibility to decide on anti-profiteering cases under GST. Such cases were earlier decided by the National Anti-Profiteering Authority (NAA).
