Summary
- The GST Appellate Tribunal has upheld a ₹10.19 lakh profiteering order against Alankar Cinema for failing to pass on GST rate reductions on ticket prices.
- Following a complaint from the Principal Commissioner, the DGAP found that the cinema maintained ticket prices despite a reduction in GST from 18% to 12% effective January 1, 2019.
- The Tribunal rejected the cinema's claims that state regulations justified price maintenance, emphasizing compliance with Section 171 of the CGST Act.
- Alankar Cinema is now required to deposit the profiteered amount into consumer welfare funds, but no penalties were imposed due to the investigation period preceding January 2020.
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