Input Tax Credit passing: businesses must reduce prices to reflect credit or face action under anti-profiteering rules. Section 171(1) requires that reductions in tax rates or the benefit of input tax credit be passed to recipients by way of commensurate price reductions; failure to recalibrate prices after GST implementation and to pass on Input Tax Credit or lower rates may invite action under the Anti-Profiteering Rules, 2017, and trade associations are asked to inform their members of this compliance obligation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input Tax Credit passing: businesses must reduce prices to reflect credit or face action under anti-profiteering rules.
Section 171(1) requires that reductions in tax rates or the benefit of input tax credit be passed to recipients by way of commensurate price reductions; failure to recalibrate prices after GST implementation and to pass on Input Tax Credit or lower rates may invite action under the Anti-Profiteering Rules, 2017, and trade associations are asked to inform their members of this compliance obligation.
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