NAA directs Tata Play to deposit Rs 450 crore for alleged profiteering

The National Anti-Profiteering Authority (NAA) has passed an order directing content distribution platform Tata Play to deposit Rs 450 crore along with 18% interest with the central and state consumer welfare funds (CWF) in a 50:50 ratio for alleged profiteering under the Central Goods & Services Tax (CGST) rules.

The authority noted that Tata Play has denied the benefit of input tax credit (ITC) to the customers/home/shop buyers in violation of the CGST Act and therefore is liable for being penalised.

The order was passed on a complaint that claimed that the benefits of ITC have not been passed to the consumers following the implementation of the GST in 2017.

The NAA, however, noted that the provisions of Section 171 (3A) have come into effect from 1st January 2020 while the alleged profiteering took place from July 2017 to January 2019. "Hence the penalty cannot be imposed retrospectively," the NAA said in its order.

In its submission, Tata Play argued that MRP collected for DTH services was unchanged in both the pre-GST and post-GST regimes. It also stated that the DTH operator did not increase its prices despite the increase in GST rates from 15% to 18% in view of the market forces-based pricing.

It pointed out that the term 'price' has not been defined under CGST Act 2017. It added that the price of the subscription packs collected from subscribers will have to be treated inclusive of tax.

NAA has asked Tata Play to deposit the profiteered amount within three months from the date of receipt of the order failing which the amount will be recovered by the jurisdictional commissioners.

The NAA asked the concerned jurisdictional SGST/CGST commissioner to submit a compliance report of this order to the authority and Director General Anti-Profiteering (DGAP).