Delhi High Court held that Non-Passing of GST Rate-Cut Benefits by Increasing Product Quantity Amounts to Deceptive Practice and Violates Section 171 of the CGST Act
The Hon’ble Delhi High Court in Sharma Trading Company held that when GST rates are reduced, the benefit must be passed directly to consumers through a corresponding reduction in the product’s price, and simply increasing the product quantity without reducing the maximum retail price (MRP) amounts to deception. The court emphasized that such practices defeat the purpose of tax cuts and curtail consumer choice, reaffirming that price reduction is mandatory under Section 171 of the CGST Act.