Multiplex chain PVR Cinemas on Friday said the Directorate General of Anti-Profiteering (DGAP) will investigate the company over complaints that it failed to pass the benefit of GST rate cuts to customers. The consumer complaints were received by the DGAP, the investigative arm of the National Anti-Profiteering Authority (NAA), with respect to its cinemas in Telangana.
“…..the company has received a notice on August 31, 2019 from the Directorate General of Anti-Profiteering for initiation of the investigation under Rule 129 of the CGST Tax Rules, 2017, in respect of its cinemas located in state of Telangana, seeking certain information/ clarifications,” PVR said in a filing with the BSE.
Along with PVR, such notices have reportedly been issued to NY Cinemas and Prasads Multiplex chain. The GST Council had lowered taxes on tickets priced above Rs 100 to 18% from 28% and for cheaper ones to 12% from 18%. The lowering of taxes came into effect form January 1, 2019.
The complaints from consumers are received by either by the state screening committees or the central standing committee. If they find merit in the petition, they forward it to the DGAP, which then serves firms with notices and asks for financial details to study if a case of profiteering can be made out.
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Source: Financial Express