NAA: Finds no profiteering, however directs audit of e-commerce platforms over GST rate cuts– taxofindia

National Anti-Profiteering Authority (NAA) discovers no profiteering in the supply of almirah through e-commerce platform, mentions that supplier can not be held guilty u/s 171 of CGST Act where discount rate provided to candidate at the time of placing of order was withdrawn at the time of supply; Remarks, “… withdrawal of discount rate does not total up to profiteering as the exact same was used from his revenue margin by the Provider and does not form part of the base rate …”; Notes that supplier had actually not altered his base cost for the almirah at the time of placing of order and supply thereof, however charged common GST rate, which had actually decreased from 28% to 18% w.e.f. November 15, 2017; “Hence, the Provider has not turned to profiteering by increasing his base cost or appropriated the excess amount of tax charged from the Applicant …”, observes NAA; More observes that Participant viz. e-commerce operator is not supplier/ producer of almirah however just an agent who uses his platform to supplier to sell by charging commission and also not accountable for collection or refund of GST, hence it can not be held accountable for conflict of Section 171 of CGST Act; Likewise finds that supplier has actually refunded the quantity through the Respondent which was charged as tax in excess from Applicant at the time of placement of order; However, thinking about that there may be a number of cases in which e-commerce platforms had collected excess GST from purchasers and have actually not reimbursed the exact same after decrease in tax rates, NAA directs Director General of Audit, CBIC to examine major e-commerce platforms: NAA

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