GSTAT Delhi Confirms ₹2.5 Lakh Profiteering By Kumar 70 MM For Ticket Price Hike Despite GST Cut

The Delhi Principal Bench of the Goods and Services Tax Appellate Tribunal (GSTAT) on 30 January 2026 held Hyderabad-based Kumar 70 MM cinema hall liable to deposit Rs. 2,50,148.39 for failing to pass on GST rate reduction benefits to customers.

A Bench comprising Judicial Member Justice Mayank Kumar Jain found that the theatre had raised ticket prices above normal MRP despite a GST rate reduction from 18% to 12% for tickets up to Rs. 100 and from 28% to 18% for tickets above Rs. 100.

The Tribunal rejected the theatre's claim that it operated on lease rent and was therefore not liable to pass on the benefit and directed it “to deposit 50% of the entire amount along with interest @18% p.a., as applicable, in the Consumer Welfare Fund(s) created by Centre,” and the remaining 50% with interest to be “deposited in the Consumer Welfare Fund(s) created by the State of Telangana within one month.”

The case originated from complaints filed with the erstwhile National Anti-Profiteering Authority under Section 171 of the CGST Act. One such complaint alleged that Kumar 70 MM retained the benefits of reduced GST and entertainment tax on ticket prices instead of passing them on to customers.

The Directorate General of Anti-Profiteering (DGAP) investigated ticket pricing from 1 January 2019 to 30 September 2019 and found that tickets priced at Rs. 80, Rs. 60, and Rs. 30 were sold at the same cum-tax price. While the usual ticket price was Rs. 80, Kumar 70 MM sold tickets for Rs. 110 in January 2019 and Rs. 125 in August 2019. The GSTAT observed that the base prices had increased across categories from Rs. 67.80 to Rs. 71.42, Rs. 50.84 to Rs. 53.57, and Rs. 25.42 to Rs. 26.79, preventing any reduction in the final cum-tax price and confirming non-passing of GST benefits to customers.

The Tribunal also noted a June 10, 2019 letter from the theatre admitting that it had not reduced prices for the Rs. 80, Rs. 60, and Rs. 30 ticket categories.

As profiteering was confirmed for ticket prices above Rs. 100, the Tribunal directed Kumar 70 MM to deposit 50% of the total profiteered amount with 18% interest in the Centre's Consumer Welfare Fund and the remaining 50% in the Telangana Consumer Welfare Fund. It clarified that “if the Telangana Consumer Welfare Fund has not been created yet, the Respondent shall deposit that portion in the Consumer Welfare Fund(s) created by the Centre instead.”