No new anti-profiteering cases to be taken up under GST from April 1

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Key Points

This would mean that businesses would have the flexibility to decide on pricing of goods and services, without taking into account the anti profiteering regulations under GST under which benefits of lower taxes are to be commensurately passed on to customers through lower prices...

... the Central Government, on the recommendations of the Goods and Services Tax Council, hereby appoints the 1st day of April, 2025 as the date from which the Authority referred to in the said section 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 that registered person, said a notification by the finance ministry...

Meanwhile in a separate notification, the finance ministry also empowered the principal bench of the GST Appellate Tribunal (GSTAT) 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 that registered person..

Sandeep Sehgal, Partner-Tax, AKM Global noted that anti-profiteering refers to the legal provision aimed at ensuring that the benefits of reduced tax rates or input credits are passed on to consumers in the form of lower prices, preventing businesses from unjustly profiting from tax benefits...

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