171. Anti-
profiteering measure.—
(1) Any reduction in rate of tax on any supply of goods or
services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate
reduction in prices.
1. Ins. by Act 38 of 2020, s. 7 (w.e.f. 31-3-2020).
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(2) The Central Government may, on recommendations of the Council, by notification, constitute an
Authority, or empower an existing Authority constituted under any law for the time being in force, to
examine whether input tax credits availed by any registered person or the reduction in the tax rate have
actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
(3) The Authority referred to in sub-section
(2) shall exercise such powers and discharge such
functions as may be prescribed.
1
[(3A) Where the Authority referred to in sub-section
(2), after holding examination as required under
the said sub-section comes to the conclusion that any registered person has profiteered under sub-
section
(1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so
profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of
the date of passing of the order by the Authority.
Explanation.—For the purposes of this section, the expression "profiteered" shall mean the amount
determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services
or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of
the goods or services or both.]
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