Monitoring GST Cuts: Role of the Anti-Profiteering Body

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 CBS LINE

Volume 3.9 




Anti-profiteering refers to regulatory provisions that ensure consumers benefit from tax rate cuts through proportional price reductions. With the upcoming revisions in Goods and Services Tax (GST) rates across various goods and services, the role of the Anti-Profiteering Committee becomes more crucial than ever. Established under the GST framework, the committee ensures that any reduction in tax rates or benefits of input tax credit is passed on to consumers in the form of commensurate price reductions. India has overhauled its GST structure, reducing the earlier four tax slabs (5%, 12%, 18%, 28%) into just two main rates—5% and 18% for most goods and services, while instituting a higher 40% rate for luxury items. Several essential and household items, including packaged food, daily essentials have seen their GST rates cut significantly, easing the burden on consumers. Several everyday food items will see a tax reduction from 18% to 5%.


 As new GST rate changes are set to take effect, the Anti-Profiteering Committee will be responsible for monitoring whether the producers and traders are passing the benefits to the consumers throw lower prices. The committee, through the National Anti-Profiteering Authority (NAA) and supported by the Directorate General of Anti-Profiteering (DGAP), investigates complaints from consumers or other stakeholders. If firms are found guilty of profiteering, by not passing on tax benefits, they may be ordered to reduce prices, refund overcharged amounts, and in some cases, pay penalties. 


 However, critics argue that the process lacks transparency and consistency in enforcement. With the upcoming GST rate revisions, there is growing pressure on the committee to strengthen its mechanisms, improve turnaround times, and adopt data-driven audits to detect non-compliance efficiently. In a time when economic recovery is still fragile, the Anti-Profiteering Committee plays a key role in ensuring fairness in market pricing. Its proactive functioning can help maintain public trust in the GST system and ensure that the intended benefits of tax policy changes are equitably shared with consumers.


Dr. Mohammed Kasim C 

Assistant Professor
Farook College ,Kozhikode

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