Delhi High Court held that Non-Passing of GST Rate-Cut Benefits by Increasing Product Quantity Amounts to Deceptive Practice and Violates Section 171 of the CGST Act
Last updated: 14 November 2025
Court :
Delhi High Court
Brief :
The Hon'ble Delhi High Court in Sharma Trading Company v. Union of India & Ors., order [W.P.(C) 13194/2018 order dated September 23, 2025] held that when GST rates are reduced, the benefit must be passed directly to consumers through a corresponding reduction in the product's price, and simply increasing the product quantity without reducing the maximum retail price (MRP) amounts to deception. The court emphasized that such practices defeat the purpose of tax cuts and curtail consumer choice, reaffirming that price reduction is mandatory under Section 171 of the CGST Act.
Citation :
W.P.(C) 13194/2018 order dated September 23, 2025
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Bimal Jain
Published in GST
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