Rule 129 of CGST Rules 2017: Initiation and Conduct of Proceedings (Anti-Profiteering)

Provisions under Rule 129 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Initiation and Conduct of Proceedings (Anti-Profiteering)”, are as under:

CGST Rule 129: Initiation and Conduct of Proceedings (Chapter-XV: Anti-Profiteering) 

(1) Where the Standing Committee is satisfied that there is a prima-facie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of Safeguards Director General of Anti-profiteering for a detailed investigation.

(2) The Director General of Safeguards Director General of Anti-profiteering shall conduct investigation and collect evidence necessary to determine whether the benefit of 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.

(3) The Director General of Safeguards Director General of Anti-profiteering shall, before initiation of the investigation, issue a notice to the interested parties containing, inter alia, information on the following, namely:-

(a) the description of the goods or services in respect of which the proceedings have been initiated;

(b) summary of the statement of facts on which the allegations are based; and

(c) the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply.

(4) The Director General of Safeguards Director General of Anti-profiteering may also issue notices to such other persons as deemed fit for a fair enquiry into the matter.

(5) The Director General of Safeguards Director General of Anti-profiteering shall make available the evidence presented to it by one interested party to the other interested parties, participating in the proceedings.

(6) The Director General of Safeguards Director General of Anti-profiteering shall complete the investigation within a period of three six months of the receipt of the reference from the Standing Committee or within such extended period not exceeding a further period of three months for reasons to be recorded in writing as allowed by the Standing Committee as may be allowed by the Authority and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records.

Amendments History:

1. In Sub-rule (6), the text ‘as allowed by the Standing Committee’ substituted with the text ‘as may be allowed by the Authority’ vide Central Tax Notification 14/2018 dt. 23/03/2018.

2. In CGST Rule 129, the text ‘Director General of Safeguards’ substituted with the text ‘Director General of Anti-profiteering’ at six places vide Central Tax Notification 29/2018 dt. 06/07/2018, w.e.f. 12/06/2018.

3. In Sub-rule (6), the text ‘three’ substituted with the text ‘six’ vide Central Tax Notification 31/2019 dt. 28/06/2019.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.