The National Anti-Profiteering Authority (NAA) has ordered direct-to-home (DTH) service provider Tata Play to deposit Rs 450 crore illegally profiteered with interest with designated consumer welfare funds of the Centre and states.
However, the authority spared the company from penalty provisions, which came into effect from January 1, 2020, whereas the period of violation was July 1, 2017, to January 1, 2019.
The NAA, a statutory mechanism under goods and services tax (GST) law to check unfair profiteering activities, said the company profiteered the amount by not passing on input tax credit (ITC) benefits to subscribers after the introduction of GST.
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It directed Tata Play (Tata Sky) to deposit Rs 450 crore in the Central and State Consumer Welfare Funds in the ratio of 50:50 along with interest.
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“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,” NAA said in the order dated August 31. Tata Play informed NAA that post-February 2019, the Telecom Regulatory Authority of India orders have specified the pricing regulations based on network carriage fees and channel package price which were being followed by the company, the NAA order quoted the company’s submission. The company further said in its submission that there was no impact of taxes on its package pricing to the consumers.