GST Update
The Central Board of Indirect Taxes & Customs (CBIC) has come up with a notification issued as on 23rd November 2022 under the Goods and Services Tax. In exercise of the powers conferred by sub-section (2) of section 171 of the CGST Act, 2017, a recommendation has been made by the Goods and Services Tax Council (GST Council) in which the Central Government has decided to empower the Competition Commission of India established under sub-section (1) of section 7 of the Competition Act, 2002 (12 of 2003) to examine whether input tax credit (ITC) availed by any registered person or the reduction in the tax have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
And as per the Central Government order, it shall come into effect from the 1st day of December 2022.
This was all about a short notification issued by the Central Board of Indirect Taxes & Customs department relating to GST.
To know what is mentioned under Section 171 of Central Goods and Services Tax (CGST), continue reading the below information.
Section 171 of CGST Act
Antiprofiteering measure — (1) Any reduction in rate of tax rate 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 price reduction
(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.
(3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.
[(3A) Where the Authority referred to in sub-section (2), after holding examination as required under the said sub-section concludes 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]106.
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A copy of notification no. 23/2022 is attached below, which you can look into for reference. To get all the updates from the CBIC department, stay tuned with EAdvisors Blogs. You will get all the updates and news on daily basis. So, stay tuned and stay updated.
