Some countries show that there has been inflation and prices increased after GST implementation. National Anti Profiteering authority made by the Constitution to ensure that the consumer is protected from the random price increase in the name of GST.

Even if there is the availability of the tax credit right from the production stage to the final consumption stage which should have actually reduced the final prices, still it has been noticed that there is an increase in inflation and the prices of commodities. This is happening Because the supplier was not passing on the benefit to the consumer. Anti-Profiteering Authority came into light to prevent this all.

About the Anti profiteering Authority

  • 5 membered committee consisting a chairman equivalent to a Secretary to the Government of India.
  • 4 technical members who have been commissioners of state tax or central tax.
  • Secretary- The Additional Director General of Safeguards under the CBEC (Board).
  • After the time period of two years from the date on which the Chairman enters upon his office, Authority shall cease to exist.

The Authority will determine the method and procedure for determining whether the reduction in rate or the benefit of input tax credit has been passed on by the seller to the buyer by reducing the prices.

Duties of Authority

  • To determine the reduction in tax rate or the benefit of input tax credit has been passed on by the seller to the buyer by reducing the prices.
  • To keep a record of taxpayers who have not passed on the benefit.
  • The Authority will exist for 2 years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
  • Anti profiteering authority  is responsible for giving orders for the reduction in prices, imposition of penalty and cancellation of Registration

Orders passed by the Authority

  • The order passed by the authority will be pass within 3 months from the date of the receipt of the report from the Director General of Safeguards by the authority.
  • On the request of interested parties, an opportunity of being heard will be given.
  • From the date of collection of higher amount till the date of return of such amount, a period of interest will be calculated.
  • If the eligible person (i.e. the buyer) does not claim the return or the person is unidentifiable then the amount must be deposited into the Fund. Interest will be calculated from the date collection of higher amount till the date it is deposited in the Fund.

If the registered person failed to comply with the order passed by the government then action shall be initiated to recover the amount in accordance with the provisions of integrated Goods and Services Tax Act, Central Goods and Services Tax Act or Union territory goods and services act.

The Authority can direct any authority of central tax, State tax or Union territory tax to monitor the implementation of the order passed by it.

Applications to the Authority

  • State level screening committee in every state shall first examine the applications from the interested party. This will be done by an officer nominated by the chief commissioner.
  • The application will be forwarded with its recommendations to the standing committee on Anti-profiteering, once the screening party gets satisfied that supplier has not passed on reduction in rate of tax on supply of goods/services or benefit of input tax credit by the way of commensurate reductions in prices.
  • Finally, the matter shall refer to Director General of safeguards for detail investigation on the satisfaction of standing committee with the prima facia evidence.

Investigation Process

To determine the undue profiteering, The Director General of Safeguards conduct an investigation and collect evidence. A notice shall be issued to the interested parties containing information on the following:

  1. Description of goods/services in respect of which the proceedings have been initiated;
  2. Summary of the statement of facts on which the allegations are based; and
  3. For furnishing the reply related to the proceedings, a time limit will be allotted to the interested parties and other persons who may have the information.

The evidence or information presented one party can be made available to the other parties, participating in the proceedings. It will be confidential under the Government act.


Anti profiteering authority is basically a committee  which makes sure that prices remain under check and that business does not pocket all the gains from GST because profit is fine but undue profiteering at the expense of common is not.


In case you are confused about GST as a business owner, feel free to consult the GST experts at Legal Raasta. You can get comprehensive assistance on GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance