GST- Non-passing of Input Tax Credit to consumers and Anti-Profiteering legal provisions thereof - GST - GST TRADE NOTICE NO. 24-02017

GOVERNMENT OF INDIA: MINISTRY OF FINANCE : DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF GST AND CENTRAL EXCISE, PUDUCHERRY GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 C. No. IV/16/86/2017- GST Dated: 08-09-2017 GST TRADE NOTICE NO. 24-02017 Sub: GST- Non-passing of Input Tax Credit to consumers and Anti-Profiteering legal provisions thereof - Reg. The Trade is hereby informed that it has come to the notice that due to unawareness of Input Tax Credit (ITC) Provisions available in the CGST Act 2017, certain traders and manufacturers have marked up the prices/ value of the goods and supplies without proper recalibration of the prices on proper analysis of impact of GST. 2. This Trade Notice is being issued so as sensitize the trade and field formations that Section 171(1) of CGST Act 2017 which provides for any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices . It is also informed that not passing on the benefits of Input Tax Credit and lower rates of GST may invite penal action under Anti-Profiteering Rules, 2017. 3. The Trade Industry Associations/ Chamber of Commerce are requested to bring the contents of Section 171 (1) of CGST Act Anti-Profiteering Rules, 2017 to the knowledge of all their members for information and necessary action. (U. NIRANJAN) COMMISSIONER