GSTAT New Delhi Confirms Rs 13,32,322 Anti-Profiteering Finding in DGAP v. A J Enterprises

The Principal Bench of the GST Appellate Tribunal (GSTAT), New Delhi, has accepted the investigation report of the Director General of Anti-Profiteering (DGAP) in DGAP Vs A J Enterprises (GSTAT New Delhi). The order was pronounced on 20 February 2026 by Justice Mayank Kumar Jain, Member (Judicial). The respondent ran a Subway franchise outlet at Amanora Mall, Pune. The question was whether it passed on to customers the benefit of the cut in GST on restaurant services from 18% to 5% (without input tax credit), effective 15 November 2017 under Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017.

Background of the Proceedings

  • The respondent, M/s A.J. Enterprises, a registered supplier of restaurant services, had operated the outlet since 2016 under a franchise agreement with Subway Systems India Pvt. Ltd.
  • An application alleging profiteering under Section 171 of the Central Goods and Services Tax Act, 2017 was examined by the Maharashtra State Level Screening Committee and forwarded to the Standing Committee on Anti-Profiteering. The Standing Committee referred it to the DGAP under Rule 129(1) of the CGST Rules for detailed investigation.
  • The DGAP's first report dated 20.08.2020 worked out a profiteered amount of Rs 15,66,821.
  • By an interim order dated 13.04.2022, the National Anti-Profiteering Authority (NAPA) remanded the matter to the DGAP under Rule 133(4), noting discrepancies such as the per-unit sales price used for computation and the inclusion of a period beyond the notice.
  • The DGAP filed a fresh report dated 14.10.2022 recomputing the profiteered amount at Rs 13,32,322 for 15.11.2017 to 30.09.2019.
  • The Principal Bench of GSTAT, constituted under Section 109(3), has handled anti-profiteering cases since 01.10.2024 under Notification No. 18/2024-Central Tax dated 30.09.2024.

What the Respondent Argued

The respondent, through counsel Shri Nikhil Gupta, filed written submissions dated 16.10.2025. It said the outlet had since closed and raised the following points.