Senior Associate in the Tax Practice at the Bangalore office of Cyril Amarchand Mangaldas. Abhilasha specializes in indirect tax advisory as well as litigation, and is also actively involved in analysing the impact of the Goods and Service Tax in India. She can be reached at abhilasha.singh@cyrilshroff.com

With the decision in Sh. Rishi Gupta v. M/s Flipkart Internet Pvt. Ltd.[1], the National Anti-profiteering Authority (NAA) has shifted the focus from the Fast Moving Consumer Goods (FMCG) sector to the e-commerce sector.

In this case, the applicant alleged that the excess amount charged at the time of placing the order should be refunded to him, given that the rate of Goods and Services Tax (GST) reduced from 28% to 18%, between the date of placing the order and the date of supply. It was further alleged that the respondent, i.e. Flipkart, was resorting to profiteering in contravention of the provisions of Section 171 of the Central Goods and Services Tax Act, 2017 (CGST Act), by not refunding the differential amount. Continue Reading Anti-Profiteering Orders – A Right Step Forward? Part II

The industry has been grappling with uncertainty around anti-profiteering provisions since its introduction. While the Goods and Services Tax (GST) legislation and rules were available in the public domain long before the effective date of July 01, 2017, the rules relating to anti-profiteering were made public only on June 28, 2017.

To everyone’s disappointment these rules failed to bring transparency and clarity to the implementation of anti-profiteering provisions; they merely chalked out the administrative hierarchy and framework of the authorities dealing with anti-profiteering complaints.

Subsequently, the Finance Ministry has made various statements promising clear guidelines on the manner of computation of commensurate benefit to be passed on to customers. However, till date nothing has been notified on this front.
Continue Reading Anti-Profiteering Orders – A Right Step Forward?