No imposition of the penalty for violation of Section 171(1) of CGST Act before 01.01.2020


Quick Summary
The National Anti-Profiteering Authority (NAA) has ruled that a penalty cannot be imposed for violations of Section 171(1) of the CGST Act that occurred between July 2017 and October 2018. This is because the penalty provisions under Section 171(3A) were only introduced and made effective from 1st January 2020. Therefore, the NAA withdrew the penalty notice issued to the respondent and dropped the proceedings.

Court :
NAA (National Anti-Profiteering Authority)

Brief :
The brief facts of the present case are that the Applicant No. 2 vide his Report dated 24.04.2019, furnished to this Authority under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017, had submitted that he had conducted an investigation on the complaint of the Applicant No. 1 and found that the Respondent had not passed on the benefit of Input Tax Credit in respect of the flat purchased by him in the "River View Heights" project of the Respondent on introduction of the GST w.e.f. 01.07.2017, as per the provisions of Section 171 (1) of the CGST Act, 2017

Citation :
Petitioner / Applicant: SH. VASANTBHAI BHIKABHAI PATEL Respondent: M/S. SHREE INFRA

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