Antiprofiteering measure Section 171 - GST Ready Reckoner - GST

Antiprofiteering measure Reduction in rate of tax shall be proportionate by way of reduction in price [ Section 171(1) ] 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. Order of the Authority [ Section 171(2) To be Read with Rule 133 ] Appointment of Notified Authority by Central Government to keep a check [ Notification No. 23/2022 Central Tax Dated 23.11.2022 ] The Competition Commission of India established under section 7(1) of the Competition Act, 2002 (w.e.f. 01.12.2022) to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. Specify the date from which the said Authority shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. [ w.e.f. 27.09.2024 vide N.No. 17/2024 Dated 27.09.2024, Inserted Vide Finance (No. 2) Act, 2024 ] Request for examination shall mean the written application filed by an applicant requesting for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. [w.e.f. 27.09.2024 vide N.No. 17/2024 , Inserted Vide Finance (No. 2) Act, 2024 ] Notify Principal Bench of GST Appellate Tribunal to hear cases of anti-profiteering - Notification No. -18/2024 - Central Tax Dated 30.09.2024 Central Government, on the recommendations of the Goods and Services Tax Council, empowers the Principal Bench of the Appellate Tribunal to assess Impact of Input Tax Credits and Tax Rate Reductions on Pricing. Penalty equivalent to 10% of the amount so profiteered Where the Authority appointed comes to the conclusion that any registered person has profiteered u/s 171(1), Penalty equivalent to 10% of the amount so profiteered will be levied No penalty imposed :- if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority [ Section 171(3A) ] Meaning For the purpose of this section As per explanation of section 171 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/proportionate reduction in the price of the goods or services or both. For the purposes of this section, the expression Authority shall include the Appellate Tribunal. [w.e.f. 27.09.2024 vide N.No. 17/2024 , Inserted Vide Finance (No. 2) Act, 2024 ] Applicable Rules Chapter XV of the CGST Rules, 2017 comprising of 16 Rules (Rule 122 to Rule 137), contains the detailed mechanism and procedure. Notification under Section 171 of CGST Act to provide for the sunset date [ Notification No. 19/2024 Central Tax dated 30.09.2024 ] Central Government, on the recommendations of the Goods and Services Tax Council, will terminate the acceptance of requests by the Competition Commission of India (CCI) or Appellate Tribunal regarding Input Tax Credit and Pricing Impact effective April 1, 2025.