CBIC empowers Appellate Tribunal to hear cases of Anti-Profiteering-CGST Notification dated 30.09.2024!

In a significant move aimed at strengthening the enforcement of anti-profiteering provisions under the Goods and Services Tax (GST) regime, the Central Board of Indirect Taxes and Customs (CBIC) has issued a notification empowering the Principal Bench of the Appellate Tribunal to hear cases related to anti-profiteering. The notification, dated September 30, 2024, outlines the legal framework that will enable the Tribunal to examine whether businesses have passed on the benefits of reduced tax rates or input tax credits to consumers. This decision comes as part of the government's ongoing efforts to ensure that GST benefits are transferred to end consumers, reinforcing the core principle of the tax structure: "one nation, one tax, and fair pricing." The new regulation, effective from October 1, 2024, marks a crucial step in enhancing transparency and accountability in the GST system.

Let’s understand the notification!

Notification No. 18/2024 - Central Tax dated 30th September2024

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MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Date: 30.09.2024

Notification No. 18/2024 - Central Tax

S.O. 4268(E).-In exercise of the powers conferred by sub-section (2) of section 171 read with sub-section (1) and second proviso to sub-section (5) of section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Goods and Services Tax Council, hereby empowers the Principal Bench of the Appellate Tribunal, constituted under sub-section (3) of section 109 of the said Act, to examine 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.

2. This notification shall come into force with effect from the 1st day of October 2024.

[F. No. CBIC-20016/25/2024-GST]

RAGHAVENDRA PAL SINGH, Director

Key Highlights of the notification

1. Appellate Tribunal's New Role: The Principal Bench of the Appellate Tribunal is empowered to examine whether the reduction in GST rates or input tax credits has led to a corresponding decrease in the price of goods or services provided by businesses.
2. Focus on Anti-Profiteering: This move aims to ensure that the benefits of tax reductions or credits are genuinely passed on to consumers, addressing concerns of profiteering.
3. Effective Date: The new provisions will be applicable starting October 1, 2024.
4. Strengthening GST Compliance: By empowering the Appellate Tribunal, the government strengthens the enforcement of anti-profiteering rules, ensuring greater transparency and accountability within the GST system.

Conclusion

The issuance of Notification No. 18/2024 - Central Tax reflects the government's continued commitment to uphold the core principles of the Goods and Services Tax (GST) system, particularly in ensuring fair pricing for consumers. By empowering the Principal Bench of the Appellate Tribunal to examine cases related to anti-profiteering, this new development adds a layer of accountability that will compel businesses to pass on the benefits of reduced tax rates and input tax credits to consumers. With the provisions set to come into effect on October 1, 2024, the move promises to enhance the transparency of the GST framework, safeguard consumer interests, and maintain the integrity of the taxation system.

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