Rule 127 of ‘Central Goods and Services Tax (CGST) Rules 2017’: Duties of the Authority (Anti-Profiteering)
Provisions under Rule 127 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Duties of the Authority (Anti-Profiteering)”, are as under:
CGST Rule 127: Duties of the Authority (Chapter-XV: Anti-Profiteering)
It shall be the duty of the Authority,-
(i) to determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices;
(ii) to identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices;
(iii) to order,
(a) reduction in prices;
(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57;
(c) imposition of penalty as specified in the Act; and
(d) cancellation of registration under the Act.
[[(iv) to furnish a performance report to the Council by the tenth [day]$2 of the close of each quarter.]]$1
$1. Clause (iv) inserted vide Notification No. 34/2017 Central Tax dt. 15 Sept. 2017
$2. The word “day” inserted in clause (iv) vide Notification No. 14/2018 Central Tax dt. 23 March 2018
Above information is based on Updated Compilation of “CGST Rules 2017” (as amended upto 9 Oct. 2018) shared by CBIC (i.e. as notified/ amended upto 9 Oct. 2018 by the CBIC). For detailed/ official information and/or subsequent updates, please refer relevant Notifications.
It may be noted that Rules 27 to 138 (pertaining to various Chapters) of the Central Goods and Services Tax (CGST) Rules, 2017 were initially notified by CBIC (CBEC) vide CGST (2nd Amendment) Rules, 2017 Notification No. 10/2017 Central Tax dt. 28 June 2017, applicable w.e.f. 1 July 2017 (or as may be specified in respective Rules).