Practical Accounts And Taxation
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An application filed by the applicant before the Standing Committee as the benefit of reduction in the rate of tax on "India Gate Basmati Rice" had not been passed on to the consumers as MRP of rice had increased.
The Anti-profiteering authority forwarded the matter to the Director General of Safeguards (DGSG). The DGSG found that the tax rate on the Basmati Rice had been increased from Nil to 5% after the implementation of the GST due to which input tax credit had become available to KRBL Ltd. The available ITC (2.69% to 3%) was insufficient to discharge the GST liability (5%). Hence, the balance amount of GST had been paid in cash so, there was no violation of anti-profiteering rules.
According to the National Anti-profiteering Authority (NAA) there had been no net benefit of ITC available to the KBRL Ltd. which could be passed on to the consumers hence, there was no substance in the application filed by applicant. And there was no violation of anti-profiteering rules.
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