CGST Rule 129: Initiation and Conduct of Proceedings (Anti-Profiteering)

Provisions under Rule 129 of CGST Rules, 2017 relating to “Initiation and Conduct of Proceedings (Anti-Profiteering)”:

CGST Rule 129: Initiation and Conduct of Proceedings (Chapter XV: Anti-Profiteering) [*1]

(1) Where the Standing Committee is satisfied that there is a prima-facie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of Anti-profiteering [*3] for a detailed investigation.

(2) The Director General of Anti-profiteering [*3] shall conduct investigation and collect evidence necessary to determine whether the benefit of 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.

(3) The Director General of Anti-profiteering [*3] shall, before initiation of the investigation, issue a notice to the interested parties containing, inter alia, information on the following, namely: –

(a) the description of the goods or services in respect of which the proceedings have been initiated;

(b) summary of the statement of facts on which the allegations are based; and

(c) the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply.

(4) The Director General of Anti-profiteering [*3] may also issue notices to such other persons as deemed fit for a fair enquiry into the matter.

(5) The Director General of Anti-profiteering [*3] shall make available the evidence presented to it by one interested party to the other interested parties, participating in the proceedings.

(6) The Director General of Anti-profiteering [*3] shall complete the investigation within a period of six [*4] months of the receipt of the reference from the Standing Committee or within such extended period not exceeding a further period of three months for reasons to be recorded in writing as may be allowed by the Authority [*2] and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records.

Notes (History of Amendments in Bare Text):

1. CGST Rule 129 introduced vide Notification 10/2017, effective 01/07/2017.

2. In sub-rule (6), the text “as allowed by the Standing Committee” substituted with the text “as may be allowed by the Authority” from 23/03/2018 vide Notification 14/2018.

3. The text “Director General of Safeguards” appearing at 6 places in rule 129 substituted with the text “Director General of Anti-profiteering” from 12/06/2018 vide Notification 29/2018.

4. In sub-rule (6), the text “three” substituted with the text “six” from 28/06/2019 vide Notification 31/2019.