Section 112 - Amendment of section 171. - Finance (No. 2) Act, 2019

Amendment of section 171. 112. In section 171 of the Central Goods and Services Tax Act, after sub-section (3), the following shall be inserted, namely: (3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub-section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered: Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority. Explanation .- For the purposes of this section, the expression profiteered shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both. . *********** Notes:- 1. Come into the force w.e.f. 01-01-2020 vide Notification No. 01/2020 Central Tax dated 01-01-2020