Tata Play found guilty of alleged GST-related profiteering, ordered to pay Rs 450 crore

Tata Play, earlier known as Tata Sky, has been found guilty of allegedly profiteering Rs 450 crore between July 2017 and January 2019 by the National Anti-Profiteering Authority (NAA). The NAA has asked the direct to home (DTH) operator company to deposit the profiteered amount, with an interest rate of 18 percent, in three months. The amount is to be deposited in consumer welfare funds. The NAA stated that Tata Play profiteered the amount by not passing on input tax credit (ITC) benefits to its subscribers after the goods and services tax (GST) was introduced. Under the new GST regime, an additional ITC of 4.19 percent, computed by the authorities, was supposed to be passed on to the consumers, which the company allegedly did not follow. According to reports, the NAA has directed Tata Play to deposit the amount equally in the Centre and state welfare funds. The investigation was launched on the basis of a subscriber’ complaint alleging that Tata Play had not passed on the commensurate ITC benefits to the subscriber, as mandated by the Central GST Act. “The above-profiteered amount shall be deposited along with the interest at 18% from the date the said profiteered amounts are deposited in the particular consumer welfare fund as prescribed within 3 months from the date of receipt of this order failing which the same shall be recovered by the jurisdictional Commissioners CGST/SGST as per the provisions of CGST/SGST Act, 2017,” an order by the NAA stated, as quoted by the Financial Express. According to the NAA order, if Tata Play does not comply, the monetary amount will be recovered by the jurisdictional commissioners SGST/CGST in accordance with the provisions of the CGST Act, 2017. Tata Play has not yet responded to any requests for comments by news organisations. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.