Anti-Profiteering Orders – A Right Step Forward? Part II

With the decision in Sh. Rishi Gupta v. M/s Flipkart Internet Pvt. Ltd.¹, the National Anti-profiteering Authority (NAA) has shifted the focus from the Fast Moving Consumer Goods (FMCG) sector to the e-commerce sector.

In this case, the applicant alleged that the excess amount charged at the time of placing the order should be refunded to him, given that the rate of Goods and Services Tax (GST) reduced from 28% to 18%, between the date of placing the order and the date of supply. It was further alleged that the respondent, i.e. Flipkart, was resorting to profiteering in contravention of the provisions of Section 171 of the Central Goods and Services Tax Act, 2017 (CGST Act), by not refunding the differential amount.The Director General of Anti-Profiteering (DGAP) noted that the respondent had refunded the excess amount to the applicant as per the instruction of the supplier of the product. The DGAP also concluded that while the discount of INR 500/- offered