Anti-Profiteering Provisions Under GST: Effectiveness and Loopholes

• Author(s): Dr. Karthik P; Rudraksh Sharma
• Paper ID: 1712620
• Page: 1158-1167
• Published Date: 15-12-2025
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 6 December-2025

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

Citations

IRE Journals:
Dr. Karthik P, Rudraksh Sharma "Anti-Profiteering Provisions Under GST: Effectiveness and Loopholes" Iconic Research And Engineering Journals Volume 9 Issue 6 2025 Page 1158-1167 https://doi.org/10.64388/IREV9I6-1712620

IEEE:
Dr. Karthik P, Rudraksh Sharma "Anti-Profiteering Provisions Under GST: Effectiveness and Loopholes" Iconic Research And Engineering Journals, 9(6) https://doi.org/10.64388/IREV9I6-1712620