Amended and updated notes on section 171 of CGST Act, 2017. Detail discussion on provisions and rules related to antiprofiteering measure.
Chapter XXI (Sections 143–174) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to miscellaneous. Section 171 of CGST 2017 provides for antiprofiteering measure.
Recently, we have discussed in detail section 170 (Rounding off of tax, etc.) of CGST Act 2017. Today, we learn the provisions of section 171 of Central GST Act 2017.
Section 171 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. This notification was come into force from 22nd June, 2017 i.e. the commencement date of section 171 is 22-6-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | XXI |
| Chapter Name | Miscellaneous |
| Section No. | 171 |
| Section Name | Antiprofiteering measure |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 171:
- Rule 21: Registration to be cancelled in certain cases
- Rule 122: Constitution of the Authority
- Rule 123: Constitution of the Standing Committee and Screening Committees
- Rule 124: Appointment, salary, allowances and other terms and conditions of service of the Chairman and Members of the Authority
- Rule 125: Secretary to the Authority
- Rule 126: Power to determine the methodology and procedure
- Rule 127: Duties of the Authority
- Rule 128: Examination of application by the Standing Committee and Screening Committee
- Rule 129: Initiation and conduct of proceedings
- Rule 130: Confidentiality of information
- Rule 131: Cooperation with other agencies or statutory authorities
- Rule 132: Power to summon persons to give evidence and produce documents
- Rule 133: Order of the Authority
- Rule 134: Decision to be taken by the majority
- Rule 135: Compliance by the registered person
- Rule 136: Monitoring of the order
- Rule 137: Tenure of Authority
Section 171 of Central GST – Antiprofiteering measure1
Section 171 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017.
Section 171(1) of CGST Act
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.
Section 171(2) of CGST Act
Section 171(2): 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.
Section 171(3) of CGST Act
Section 171(3): The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.
Section 171(3A) of CGST Act
Section 171(3A): Where the Authority referred to in sub-section (2), after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub-section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.
Explanation: For the purposes of this section, the expression “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 reduction in the price of the goods or services or both.
- Section 171 of CGST Act 2017 shall come into force on 22.06.2017 vide Notification No. 1/2017-Central Tax, G.S.R. 605(E), dated 19.06.2017. ↩︎