Anti profiteering duty requires tax reductions and input tax credit benefits to be passed to buyers through commensurate price cuts.

Anti-profiteering requires that any reduction in tax rate or the benefit of input tax credit on supply of goods or services be passed on to recipients by way of commensurate reduction in prices. The Central Government may, on Council recommendation, constitute or empower an Authority to examine whether input tax credits availed or tax rate reductions have resulted in commensurate price reductions, and that Authority shall exercise prescribed powers and functions to investigate compliance.

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