Sunset date for Anti-profiteering provisions declared-CGST Notification dated 30.09.2024!

In a significant move for businesses and tax professionals alike, the government has announced the sunset date for the Anti-profiteering provisions under the Goods and Services Tax (GST) regime. According to the CGST Notification dated September 30, 2024, the provisions that have long been a point of concern and compliance challenge for businesses will come to an end. All pending anti-profiteering cases under GST will now be handled by GSTAT. This marks a crucial turning point in the implementation of GST, as the focus shifts from stringent regulatory oversight to a more streamlined taxation system. 

Let’s understand the changes.

Notification No. 19/2024 - Central Tax 30^th September 2024

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MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Date: 30.09.2024

Notification No. 19/2024 - Central Tax

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S.O. 4269(E) In exercise of the powers conferred by the proviso to sub-section (2) of section 171 of the Central Goods and Services Tax Act, 2017 (12 of 2017), 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 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 on the date of its publication in the Official Gazette.

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

RAGHAVENDRA PAL SINGH, Director

Key highlights of the notification

• The Ministry of Finance, through Notification No. 19/2024-Central Tax dated 30th September 2024, has announced that starting from 1st April 2025, the Authority under Section 171 of the CGST Act will no longer accept requests for examining whether input tax credits or tax rate reductions have led to a corresponding reduction in the prices of goods or services supplied by registered persons. This move, based on the recommendations of the GST Council, marks a significant shift in the enforcement of anti-profiteering provisions, providing clarity on the regulatory framework going forward. 
• All pending anti-profiteering cases under GST will now be handled by the Principal Bench of the Appellate Tribunal.\

Conclusion

The declaration of the sunset date for the Anti-profiteering provisions under GST, as outlined in CGST Notification No. 19/2024, marks a pivotal moment in the evolution of India’s taxation system. With the provisions set to expire on 1st April 2025, businesses can now look forward to a more predictable and streamlined compliance environment, reducing the complexities that have been associated with these provisions. This shift not only aligns with the broader goal of simplifying tax processes but also provides businesses with greater clarity moving forward.

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