Govt Won’t Restore Anti-Profiteering Under GST
The Indian government has confirmed there are no plans to bring back the anti-profiteering provisions under Section 171 of the GST law. These provisions required businesses to pass on tax rate cuts or input tax credit benefits to consumers.
Background: What Changed
When GST was introduced in 2017, the anti-profiteering law and a body called the National Anti-Profiteering Authority (NAA) were set up to enforce it. Later, NAA was dissolved in late 2022 and its functions were transferred to the Competition Commission of India (CCI). From March 31, 2025, no new complaints under the anti-profiteering law are being accepted.
Government’s Position & Industry Response
Officials say that the decision to not revive anti-profiteering rules aims to simplify compliance and promote ease of doing business. The government expects industry will voluntarily pass on benefits of GST rate reductions. Some states and experts, however, argue that without formal enforcement, businesses might not reduce prices proportionately.
