ANTI-PROFITEERING UNDER GST ACT

1. GST law provides that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices.
2. An authority may be constituted by the government 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 him. 
3. It is prescribed for constitution of a Screening Committee for the State and Standing Committee for the Centre.
4. The complaints will be first examined by Screening Committee and if satisfied forward same to The Standing Committee.
5. The standing Committee if satisfied will forward case to Director General Safe Guard who will cause detailed investigations by examining records and persons and then make suitable recommendation to the authority within three months of receipt of reference from Standing Committee.
6. The Authority, after due hearings, will pass suitable orders within three months, directing tax payers to reduce the price or return excess charged price or cancel registration or impose penalty.