Court Buzz, GST

Case Round Up: The NAA fines cinema corporations for no reduction in ticket prices despite GST rate reduction.

The National Anti-Profiteering Authority in its recent orders has fined cinema corporations in respect of supply of ‘Services by way of admission to exhibition of cinematography films where the price of admission ticket was above one hundred rupees’ despite reduction in the rate of GST from 28% to 18% w.e.f. 01.01.2019. We bring you the latest cases below;

M/s Inox Leisure Pvt. Ltd

Date of Judgement: 08.09.20

The Respondent continued to charge of tickets at the given prices of Rs. 250/-, Rs. 200/- and Rs. 150/-. After the reduction in the rate of GST from 28% to 18%, vide Notification No. 27/2018- Central Tax (Rate) dated 31.12.2018. Instead M/s Inox had increased the base prices resulting in non passing on of the benefit of rate reduction to customers.

M/s PVR Ltd.

Date of Judgment: 24.08.20

M/s PVR continued to sell tickets at Rs. 250/-. Rs. 200/-, Rs. 150/-.  The act was done prior to and after the GST rate reduction vide Notification No. 27/2018-Central Tax (Rate) dated 31.12 2018. Even after the rate reduction from 28% to 18% w.e.f. 01.01.2019 the Respondent increased the base prices and continued to make profit. 

Prasad Media Corporation Pvt. Ltd.

Date of Judgement: 07.07.20

The Respondent had increased the base price of ‘2D Movie’ tickets from Rs. 117,18/- to Rs. 127.12/- and that of ‘3D Movie’ tickets from Rs. 195.32/- to Rs. 211 86/- when the GST rate was reduced from 28% to 18% w.e.f 01.01 2019 The Respondent did not pass on the benefit of reduction in the GST rate from 28% to 18% which came into effect on 01.01.2019 vide Notification No 27/2018-Central Tax (Rate) dated 31.12.2018 and that the Respondent had instead increased the base price of the tickets.

Vox Analytica GST
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