GSTAT Confirms ₹90.90 Lakh Profiteering by C.G. Foods in GST Rate Cut Case

Background

The Goods and Services Tax Appellate Tribunal (GSTAT), Single Bench, Delhi (PB), has confirmed profiteering of ₹90.90 lakh by C.G. Foods for failure to pass on the benefit of GST rate reduction on instant noodles. The order was pronounced on 3 February 2026 in Appeal No. NAPA/99/PB/2025 filed by the Director General of Anti-Profiteering (DGAP). The case arose from a DGAP investigation under Section 171 of the CGST Act, 2017, following a complaint alleging that C.G. Foods did not pass on the benefit of GST rate reduction from 18% to 12% with effect from 15 November 2017, as notified under Notification No. 41/2017–Central Tax (Rate). DGAP’s invoice-wise analysis found that the respondent increased base prices post-rate reduction, thereby negating the tax benefit meant for consumers.

Findings

After examining submissions and relying on principles laid down by the Delhi High Court, the Tribunal held that the presumption of profiteering remained unrebutted. It accepted the DGAP report to the extent of profiteering of ₹90.90 lakh for the period from 15 November 2017 to 31 December 2018. However, the Tribunal declined to impose interest or penalty, noting that the relevant provisions enabling such levy came into force after the period of violation. C.G. Foods has been directed to deposit the profiteered amount into the Consumer Welfare Fund of the Centre and States in equal proportion.