“The purpose behind implementing anti-profiteering provisions was to ensure that companies pass on the benefits of reduced GST rates or increased Input Tax Credit (ITC) to customers. However, over the past six years, the GST Act has evolved significantly, leading to a substantial decrease in the frequency of changes, particularly in GST rates. Moreover, the National Anti-Profiteering Authority (NAA) was dissolved in December 2022, and the Competition Commission of India (CCI) was tasked with overseeing matters related to price reductions resulting from tax rate cuts or ITC enhancements. While NAA authorities possess specialized knowledge of GST provisions, CCI authorities lack such expertise. Consequently, the absence of standardized processes or guidelines for anti-profiteering renders the entire exercise discretionary and ambiguous. As a result, the industry is seeking recourse in the apex court to challenge the lack of specific time limits and the absence of clear guidelines or methodologies in these special provisions.”
