Section 171 - Anti-profiteering measure.

Anti-profiteering requirement requires pass-through of tax rate reductions and input tax credit benefits to recipients.

Anti-profiteering requires any reduction in tax rate or input tax credit benefit to be passed to recipients via commensurate price reductions. The Central Government may constitute or empower an Authority to examine requests alleging non-passing of such benefits; the Authority (including the Appellate Tribunal) will exercise prescribed powers and may be subject to a notification limiting acceptance of examination requests. If the Authority concludes a person has profiteered, a penalty equal to ten per cent of the amount so determined is leviable, though no penalty arises if the profiteered amount is deposited within thirty days of the order.