From the first day of next fiscal year - Fiscal Year 2025-26 (FY26) – no fresh case of anti-profiteering will be registered. Also, from Tuesday, the Principal Bench of GST Appellate Tribunal (GSTAT) will hear anti-profiteering complaints in place of Competition Commission of India (CCI).
Based on the recommendation of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) has notified changes that mark the end of the anti-profiteering mechanism with the beginning of the ninth year of GST.
“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 actually resulted in a commensurate reduction in the price of the goods or services or both supplied by that registered person,” a notification by CBIC said while adding that it will come into force on the date (September 30, 2024) of its publication in the Official Gazette.
Explaining this, Rajat Mohan, Executive Director, MOORE Singhi, says it establishes a clear cutoff date of April 1 2025, after which the GST Appellate Tribunal will no longer accept new requests for investigation into profiteering matters. “This deadline marks a significant transition phase for businesses, the government, and consumers, as—for the first time since the introduction of GST—market forces will largely determine prices, free from the oversight of anti-profiteering regulations,” he said.
The intent behind this shift seems to be the simplification of GST compliance by narrowing the window for anti-profiteering scrutiny. However, “it is important to note that ongoing complaints and investigations as of the cutoff date will continue until they reach a final conclusion,” he said.
Mohan emphasised that from April 1, 2025, businesses will have the autonomy to set prices for goods and services without the constraints of anti-profiteering regulations, which are expected to significantly boost industries. “This deregulation will usher in a more dynamic pricing environment, allowing businesses greater flexibility to adjust their pricing strategies in response to market demands,” he said.
Another CBIC notification said: “The Central Government, on the recommendations of the Goods and Services Tax Council, hereby empowers the Principal Bench of the Appellate Tribunal, 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,” a notification issued by the CBIC said. This has been made effective from October 1, 2024.
Terming this as a pivotal enhancement in the judicial framework designed to ensure compliance with anti-profiteering provisions under the GST regime, Mohan said that by empowering the Principal Bench of the GST Appellate Tribunal to adjudicate anti-profiteering cases, the government restores oversight of profiteering matters, which were earlier delegated to the Competition Commission of India (CCI). Despite having issued a few orders during this interim period, the CCI faced challenges due to a lack of specialised expertise in tax laws, leading to roadblocks in effectively addressing profiteering concerns. “This move brings the much-needed tax law expertise back into the fold, ensuring more precise and informed decisions on profiteering cases,” he said.