Page 41 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] NEWS DESK J83
AAAR said in an order issued recently. The Maharashtra AAAR effectively set
aside the state AAR ruling that had termed membership fee as supply of service
liable to GST.
[Source : The Economic Times, New Delhi, dated 11-7-2020]

Hyderabad-based company held guilty of GST profiteering
on movie tickets
In one of its first rulings in the entertainment sector, the National Anti-
profiteering Authority (NAA) under the GST regime has found Hyderabad-
based Prasad Media Corporation guilty of profiteering ` 30.13 lakh by not pass-
ing on the benefit of tax rate cut to 18 per cent on movie tickets.
The Directorate General of Anti-profiteering investigated the case and
based on its report, the NAA ruled that the company had raised the base price of
the tickets.
“This Authority has found that the respondent has resorted to profiteer-
ing by way of either increasing the base prices of the service while maintaining
the same selling prices or by way of not reducing the selling prices of the service
commensurately despite a reduction in GST rate on services by way of addition
to exhibitions of cinematograph films where price of admission ticket is above
` 100 from 28 per cent to 18 per cent with effect from January 1, 2019 to June 30,
2019. On this account, the respondent has realised an additional amount to the
tune of ` 30,13,058 from the recipients. Thus, the profiteering is determined as
` 30,13,058,” the NAA order said.
EY Tax Partner Abhishek Jain said, “Investigations on Anti-profiteering
were more for the goods sector till date, and this is one among the first in the en-
tertainment sector. The life of Anti-profiteering obligations and clarity on calcu-
lation of these benefits remain areas on which businesses have been looking for-
ward for certainty from the Government”.
[Source : The Indian Express, New Delhi, dated 11-7-2020]

Charitable trust’s financial support for rape, child abuse
victim won’t attract GST : West Bengal AAR
Reimbursement of legal fees or expenditure on counselling for rape or
child abuse victims will not attract Goods & Services Tax (GST), West Bengal’s
Authority for Advance Ruling (AAR) has ruled.
The ruling came on an application from Kolkata-based charitable trust
Swayam, which extends legal, medical, psychological and financial support to
women and children who have survived violence and abuse. Swayam also facili-
tates training programmes and workshops for survivors of such atrocities.
Swayam had approached the AAR to ascertain whether it is liable to pay
tax GST on its activities. The question, it said, has neither been decided nor is
pending before any authority.
Swayam noted that it facilitates access to legal aid for women survivors.
For example, it accompanies the survivor to the Police Station and to Courts and
liaises with lawyers when required. Depending on the financial circumstances of

GST LAW TIMES  16th July 2020  41