The National Anti- Profiteering Agency (NAA) has ordered Direct-to-Home (DTH) service
provider Tata Play formerly known as Tata Sky to deposit Rs 450 crore in the Consumer
Welfare Fund along with interest of 18% in three months. The agency allegedly held the
service provider guilty for allegedly profiteering after the introduction of Goods and Services
Tax (GST), showed an official order.
According to the GST law, the suppliers of goods and services should pass on the benefit of
any reduction in the rate of tax or the benefit of ITC to the recipients by way of
commensurate reduction in prices. The wilful action of not passing on the above benefits to
the recipients in the manner prescribed is known as “profiteering”.
As per the order, TATA Play earned the amount during the period from July 2017 to January
2019 by not passing on the input tax (ITC) credit benefits to the customers after the
introduction of Goods & Services Tax (GST).
The Respondent is directed to deposit the amount profiteered in two equal parts, of Rs
225,09,03,629 in the Central Consumer Welfare Fund (CWE) and Rs 225,09,03,629 in the
particular/tabulated State Consumer Welfare Funds as per the provisions of Rule 133 (3) (e)
of the CGST Rules, 2017 along with interest of 18 per cent,” the order said.
An application was filed by a consumer based in Karnataka alleging that the company had
not passed on the commensurate ITC benefit to the subscriber for annual subscription.
which led to an investigation by the Director General of Anti-Profiteering (DGAP).
According to the NAA order, if Tata Play did not comply, the monetary amount would be
recovered by the jurisdictional commissioners SGST/CGST in accordance with the
provisions of the CGST Act, 2017. It has also asked the concerned jurisdictional central
GST/state GST commissioner to submit a report on compliance of this order to the authority
within 4 months from the date of receipt of this order.
Source: https://economictimes.indiatimes.com/, https://www.newindianexpress.com/