The government has announced April 1, 2025, as the sunset date for the anti-profiteering clause in the GST law.
Also, from October 1 all appeals pending under the anti-profiteering provisions will be handled by the Principal Bench of the GST Appellate Tribunal (GSTAT), instead of the Competition Commission of India (CCI), the government’s GST policy wing said in another notification.
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These notifications follow the recommendations of the GST Council, in its 53rd meeting on June 22, which had proposed to amend Section 171 and Section 109 of the CGST Act, 2017 to provide a sunset clause for anti-profiteering under GST and to provide for administration. of anti-profiteering cases by the Chief bench of GSTAT.
The Council also recommended a sunset date of April 1, 2025, for accepting any new anti-profiteering application.
The notification of the GST policy department will state that from 1 April 2025, consumers will not be able to file complaints about the profiteering of companies that do not pass on the benefits of a proportional GST rate reduction to end customers. However, appeals filed before 1st April 2025, will be dealt with by the GSTAT Principal Bench till the final decision is reached.
“…the Central government, on the recommendations of the Goods and Services Tax Council, hereby appoints the 1st day of April 2025 as the date on which the Authority referred to in the said section shall not entertain any application for examination of whether input tax credits are availed by any registered person or reduction of rate this tax actually results in a proportionate reduction in the price of goods or services or both provided by that registered person,” the official notification said.
Chief executive of accounting firm Moore Singhi, Rajat Mohan, said the deadline marks an important phase of change for businesses, government, and consumers, the first time since the introduction of GSTmarket forces that will largely dictate prices, without overseeing anti-profiteering rules.
“The aim of this change seems to be to facilitate GST compliance by reducing the window of anti-profiteering assessment. This arrangement will bring about a flexible pricing environment, allowing businesses the flexibility to adjust their pricing strategies in response to market demands,” said Mohan.
AKM Global, Partner-Tax, Sandeep Sehgal said the move aims to improve efficiency by reducing the burden on CCI and ensuring that cases are resolved under the tax-specific procedures of GSTAT.
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First published: October 02 2024 | 12:34 AM IST