CGST Rule 127: Functions of the Authority (Anti-Profiteering)

Provisions under Rule 127 of CGST Rules, 2017 relating to “Functions of the Authority (Anti-Profiteering)”:

CGST Rule 127: Functions of the Authority (Chapter XV: Anti-Profiteering) [*1&4(a)]

The authority shall discharge the following functions, namely: – [*4(b)]

(i) to determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices;

(ii) to identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices;

(iii) to order,

(a) reduction in prices;

(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57;

(c) imposition of penalty as specified in the Act; and

(d) cancellation of registration under the Act.

(iv) to furnish a performance report to the Council by the tenth day [*3] of the close of each quarter. [*2]

Notes (History of Amendments in Bare Text):

1. CGST Rule 127 introduced vide Notification 10/2017, effective 01/07/2017.

2. Clause (iv) inserted from 15/09/2017 vide Notification 34/2017.

3. In clause (iv), the text “day” inserted after the text “to furnish a performance report to the Council by the tenth” from 23/03/2018 vide Notification 14/2018.

4. Amendments from 01/12/2022 vide Notification 24/2022:

(i) in the marginal heading, the text “Duties” substituted with the text “Functions”.

(ii) the text “It shall be the duty of the Authority,-” substituted with the text “The authority shall discharge the following functions, namely:–”.