Home / Current Issue / Paper 1712620
Anti-Profiteering Provisions Under GST: Effectiveness and Loopholes
Subject area: Management and Commerce · Area of research: Taxation, GST
DOI: https://doi.org/10.64388/IREV9I6-1712620
Abstract
This study examines the anti-profiteering provisions in the Central Goods and Services Tax Act, 2017 (Section 171), that require businesses to pass on benefit of tax rate decreases or input tax credits to customers by reducing prices. It discusses the institutional framework of the National Anti-Profiteering Authority (NAA), the Competition Commission of India (CCI), and the Directorate General of Anti-Profiteering (DGAP), drawing comparisons to the frameworks in Australia and Malaysia. A review of case law, reports, and stakeholder submissions raises a number of issues, including the absence of a standard formula, complexity of supply chains, and issue high compliance costs. Finally, the study offers recommendations for developing simplified methodologies, sectoral benchmarks and a market-based oversight concerning GST 2.0.
Keywords
GST, Anti-profiteering, Tax reform, Input Tax Credit, Consumer welfare
How to cite this paper
@article{1712620,
author = {Dr. Karthik P, Rudraksh Sharma},
title = {Anti-Profiteering Provisions Under GST: Effectiveness and Loopholes},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {6},
pages = {1158-1167},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1712620.pdf},
abstract = {This study examines the anti-profiteering provisions in the Central Goods and Services Tax Act, 2017 (Section 171), that require businesses to pass on benefit of tax rate decreases or input tax credits to customers by reducing prices. It discusses the institutional framework of the National Anti-Profiteering Authority (NAA), the Competition Commission of India (CCI), and the Directorate General of Anti-Profiteering (DGAP), drawing comparisons to the frameworks in Australia and Malaysia. A review of case law, reports, and stakeholder submissions raises a number of issues, including the absence of a standard formula, complexity of supply chains, and issue high compliance costs. Finally, the study offers recommendations for developing simplified methodologies, sectoral benchmarks and a market-based oversight concerning GST 2.0.},
keywords = {GST, Anti-profiteering, Tax reform, Input Tax Credit, Consumer welfare},
month = {December},
doi = {https://doi.org/10.64388/IREV9I6-1712620}
}