National Anti-Profiteering Authority (NAA) rules in favour of Honda Car dealer, finds no merit in application filed under Rule 128 of CGST Rules absent contravention of Section 171 of CGST Act; Concurs with Director General Safeguards (DGSG) that applicant’s contention that pre-GST tax rate of 51% was reduced to 29% in post GST era was factually incorrect; Finds that pre-GST tax rate on car sought to be purchased was 31.254% which was rationalized to 29%, thus resulting in reduction of only about 2%;
Moreover, though car of ‘premium colour’ was booked at an amount of Rs. 9.13 lakhs (approx.) at pre-GST rate, when applicant took delivery of ‘base colour’ car in post GST period, the dealer charged an ex-showroom price of Rs. 8.98 lakhs (approx.) which correctly included basic price of car, freight, insurance, dealer’s margin etc. and 29% GST; “Thus, the benefit of reduction in the tax rate was passed on to the applicant by way of reduction in the price of the car of base colour by an amount of Rs. 10,550/-”, observes NAA;
As regards question of whether any ITC was to be passed on to applicant by dealer, NAA opines, “the applicant has not understood the provisions of Section 171 of the CGST Act, 2017 and the DGSG’s report in its true spirit and context”; Explains that the entire scheme of GST is ITC based, the amount of Rs. 10,550/- passed on to applicant is inclusive of ITC and therefore, no additional benefit on account of ITC is required to be paid by the dealer; Accordingly, holds that dealer “has not contravened the provisions of Section 171 of the CGST Act, 2017”.
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