Rule 129 of CGST Rules 2017: Initiation and Conduct of Proceedings (Anti-Profiteering)

Rule 129 of ‘Central Goods and Services Tax (CGST) Rules 2017’: Initiation and Conduct of Proceedings (Anti-Profiteering)

Provisions under Rule 129 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Initiation and Conduct of Proceedings (Anti-Profiteering)”, as per CGST (2nd Amendment) Rules 2017 notified by CBEC on 28 June 2017, applicable w.e.f. 1 July 2017, are as under:

CGST Rule 129: Initiation and Conduct of Proceedings (Chapter-XV: Anti-Profiteering) 

(1) Where the Standing Committee is satisfied that there is a prima-facie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of Safeguards for a detailed investigation.

(2) The Director General of Safeguards shall conduct investigation and collect evidence necessary to determine whether the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices.

(3) The Director General of Safeguards shall, before initiation of the investigation, issue a notice to the interested parties containing, inter alia, information on the following, namely:-

(a) the description of the goods or services in respect of which the proceedings have been initiated;

(b) summary of the statement of facts on which the allegations are based; and

(c) the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply.

(4) The Director General of Safeguards may also issue notices to such other persons as deemed fit for a fair enquiry into the matter.

(5) The Director General of Safeguards shall make available the evidence presented to it by one interested party to the other interested parties, participating in the proceedings.

(6) The Director General of Safeguards shall complete the investigation within a period of three months of the receipt of the reference from the Standing Committee or within such extended period not exceeding a further period of three months for reasons to be recorded in writing as allowed by the Standing Committee and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records.

Related Posts:

CGST (2nd Amendment) Rules, 2017: CGST Notification No. 10/2017

CGST (Amendment) Rules 2017: CGST Notification No. 7/2017

CGST Rules 2017: CGST Notification No. 3/2017 dt. 19 June 2017

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