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GST Anti-Profiteering: Businesses Not Passing on the Price Reduction Benefits to Attract Penalties
June 19, 2017
To ensure that businesses pass on the benefits of price reduction under the GST regime, the Goods and Services Tax Council will set up a five-member anti-profiteering group that will be given the authority to levy penalties on non-complaint businesses.
Yesterday, the GST council finalized and approved the anti-profiteering rules, according to which the authority will make the decisions on the penalties and also ask the businesses to refund price reductions to the consumers when appropriate.
The Section 171 of the Central GST says that the benefits of price reduction in goods and services or input tax credit must be passed on the customers.
