Chapter XXI (Sections 143-174) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to miscellaneous provisions. Section 171 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Antiprofiteering measure under CGST Act 2017.
Recently, we have discussed in detail section 170 (i.e. Rounding off of tax, etc.) of CGST Act 2017. Today, we learn the provisions of section 171 of the CGST Act 2017. Complete Details of CGST Section 171 – Antiprofiteering measure. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Notes on Section 171 of CGST Act 2017
Section 171 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017 – Central Tax, G.S.R. 658(E), dated 28.06.2017. In this note, you will learn detail of the provisions of section 171 of CGST Act 2017 read with Central GST Rules 2017.
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.
The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, 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.
The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.