A consumer recently raised concerns regarding a gym’s pricing practices, alleging that the facility adjusted its base membership fee to maintain the total cost at ₹6,000, despite a reduction in the Goods and Services Tax (GST) rate. This reported incident involved a billing on September 19, where the base fee of ₹5,084.75 plus 18% GST of ₹915.25 resulted in the total unchanged amount.
Legal experts have commented on the situation. Kamal Aggarwal, Senior Advisor at Singhania & Co., indicated that increasing a base price to offset a GST reduction could be viewed as profiteering. He highlighted that Section 171 of the CGST Act, 2017, mandates businesses to pass on the benefits of rate rationalization to consumers, requiring evidence such as invoices to demonstrate compliance or non-compliance.
Furthermore, Rahul Sateeja, Partner at DMD Advocates, informed that following recent GST rate cuts, the government has provided mechanisms for consumers to report grievances. Individuals can contact the National Consumer Helpline (NCH) via the toll-free number 1915 or WhatsApp at 8800001915. Complaints can also be registered on the Integrated Grievance Redressal Mechanism (INGRAM) portal. These avenues were established after the government announced a broader simplification and rate rationalization of GST earlier this month.
Source: www.livemint.com