In terms of section 171 of the Central Goods and Services Tax Act, 2017, any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices. Further, the National Anti-profiteering Authority (NAA) has been constituted by the Government to examine the complaints of profiteering against registered persons under GST. The anti- profiteering mechanism and procedures have been provided for under Chapter XV of the Central Goods and Services Tax Rules, 2017.

Government has taken action against any business entity under Anti Profiteering Mechanism.  As on 20.06.2019, based on the Investigation Reports sent by the Directorate General of Anti-profiteering (DGAP), the National Anti-profiteering Authority (NAA) has passed 67 orders out of which 26 cases were confirmed for profiteering by businesses, with profiteering amounting to ₹ 600.51 crores.

This was stated by Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs in a written reply to a question in Rajya Sabha.

Anti-profiteering obligation requires registered suppliers to pass tax rate reductions and input tax credit benefits to recipients. Section 171 imposes an anti profiteering obligation on registered suppliers to pass reductions in tax rates and benefits of input tax credit to recipients by commensurate price reductions; procedural implementation is provided under Chapter XV of the CGST Rules, 2017, and administrative investigations and determinations arise from complaint driven investigation reports and consequent orders addressing non compliance.