The government has notified April 1, 2025 as the ban date for anti-profiteering GST
The government has notified April 1, 2025 as the cut-off date for the anti-profiteering clause in the GST law.
Also, from October 1, all pending complaints under the anti-profiteering provisions will be heard by the principal bench of the GST Appellate Tribunal (GSTAT), instead of the Competition Commission of India (CCI), the GST Policy Wing said government in another notification.
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These notifications follow the recommendations of the GST Council, which in its 53rd meeting on June 22, had recommended amending Section 171 and Section 109 of the CGST Act, 2017 to provide for sunset clause for anti-profiteering under GST and to provide for disposal of anti-profiteering cases by the Principal Bench of GSTAT.
The Council also recommended the cut-off date of April 1, 2025 for the receipt of new applications related to anti-profiteering.
The notification by the GST Policy Department would mean that from April 1, 2025, consumers would no longer be able to file complaints about profiteering by companies that do not pass on the benefits of the GST rate reduction to end customers. However, complaints filed before April 1, 2025 will be dealt with by the Principal Bench of GSTAT until a final conclusion is reached.
“…the Central Government, on the advice of the Goods and Services Tax Board, hereby appoints the 1st day of April 2025 as the date from which the Authority referred to in the said Article shall not accept any request for investigation in respect of whether the input tax credits availed by a registered person or the reduction in the rate of tax has in fact resulted in a proportionate reduction in the price of the goods or services or both supplied by that registered person,” said an official notification.
Rajat Mohan, executive director of accounting firm Moore Singhi, said this deadline marks an important transition phase for businesses, the government and consumers as market forces will largely determine prices for the first time since the introduction of GST, free from anti-profiteering oversight. regulations.
“The intention behind this shift appears to be to simplify GST compliance by reducing the scope for anti-profiteering. This deregulation will usher in a more dynamic pricing environment, giving companies more flexibility to adjust their pricing strategies in response to market demand. Mohan said.
AKM Global, Partner-Tax, Sandeep Sehgal said this move aims to increase efficiency by reducing the burden on the CCI and ensure that cases are resolved under the tax-specific mechanisms of GSTAT.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First publication: Oct 02, 2024 | 12:34 pm IST