NAA asks Tata Play to deposit Rs 450 crore for alleged GST profiteering

The National Anti-Profiteering Authority (NAA) has issued an order asking Tata Play to deposit Rs 450 crore along with interest with consumer welfare funds for allegedly profiteering after the Central Goods & Services Tax (CGST) rules.

The NAA pointed out that Tata Play violated the CGST Act by denying its customers the benefit of input tax credit (ITC). Thus, the order said, it is liable to be penalised.

The order, issued upon receiving complaints that the benefits of ITC were not given to consumers after the GST was implemented 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.

The probe considered the allegation that in Tata Play’s direct-to-home service, the resultant benefits of input tax credit following the implementation of GST was not given to the consumers as required under the Central GST Act.

Tata Play contended that that MRP gathered for DTH services remain unchanged before and after the GST times.