GST Anti-Profiteering Clause To Expire From April Next Year

The central government on Tuesday announced April 1, 2025, as the sunset date for the anti-profiteering clause in the Goods and Services Tax law.

Additionally, starting Oct. 1, all pending complaints related to anti-profiteering will be managed by the Principal Bench of the GST Appellate Tribunal (GSTAT) rather than the Competition Commission of India, according to a notification from the GST policy wing.

The anti-profiteering measure stipulates that any reduction in the rate of tax or the benefit of input tax credit needs to be passed on to the final consumer by way of a commensurate reduction in prices.

The GST Council in June recommended amendment to CGST Act provisions to provide a sunset clause of April 1, 2025, for anti-profiteering under GST. Moreover, it decided to shift hearing of such cases from the CCI to GSTAT when it becomes functional.

The notification by the GST policy wing would mean that from April 1, 2025, consumers would not be able to file complaints regarding profiteering by companies not passing commensurate GST rate cut benefits to end customers. However, complaints filed before April 1, 2025, would be dealt with by the principal bench of GSTAT until a final conclusion is reached.

"...the Central government, on the recommendations of the Goods and Services Tax Council, hereby appoints the 1st day of April 2025 as the date from which the Authority referred to in the said section shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by that registered person," an official notification said.

(With inputs from PTI.)