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Indirect Tax Laws and Practice · Anti-profiteering

Authorities Under the GST Anti-Profiteering Mechanism

Updated 11 October 2026 · Fact-checked

The anti-profiteering mechanism has a chain of authorities. A State Screening Committee checks local complaints, the Standing Committee checks for prima-facie evidence, the Director General of Anti-profiteering (DGAP) investigates, and the Authority decides and orders relief. You solve questions by placing each step with the right body and its time limit.

Understand Authorities Under Anti-Profiteering Mechanism

Anti-profiteering exists to make sure suppliers pass on to buyers the benefit of a GST rate cut or of input tax credit, through a commensurate reduction in prices. The substantive duty sits in section 171 of the CGST Act. The CGST Rules, 2017 (rules 122 to 137) set up the bodies that enforce it. This topic is about who those bodies are and what each does.

Think of it as a pipeline. A complaint comes in. It is screened, then tested for prima-facie evidence, then investigated, then decided. Each stage has its own authority, so the exam question is usually 'which body does what, and within what time'.

The Standing Committee on Anti-profiteering may be constituted by the Council. It consists of officers of the State Government and Central Government nominated by the Council (rule 123(1)). It examines applications and decides whether prima-facie evidence exists.

A State level Screening Committee is constituted in each State by the State Government (rule 123(2)). It has two members: one officer of the State Government nominated by the Commissioner, and one officer of the Central Government nominated by the Chief Commissioner. It first examines applications on issues of local nature, and those forwarded by the Standing Committee.

The Director General of Anti-profiteering (DGAP) carries out the detailed investigation. Note the name: the rules originally said 'Director General of Safeguards', and this was substituted with effect from 12.06.2018. Your syllabus note may still say Safeguards, but use DGAP in answers. The Authority receives the DGAP report and determines whether the benefit was passed on. It also allows time extensions and can order relief.

Key rules to remember

Standing Committee
Constituted by the Council; officers of State and Central Government nominated by it (rule 123(1))
The Council constitutes it. The Standing Committee is not a State body.
State Screening Committee
1 State Government officer (nominated by Commissioner) + 1 Central Government officer (nominated by Chief Commissioner) (rule 123(2))
Constituted in each State by the State Government. Two members only.
Screening Committee time limit
2 months from receipt of application + extension up to 1 more month, for reasons recorded in writing, as allowed by the Authority (rule 128(2))
If satisfied that section 171 is contravened, it forwards the application with recommendations to the Standing Committee.
Standing Committee time limit
2 months from receipt of written application + extension up to 1 more month, as allowed by the Authority (rule 128(1))
It tests accuracy and adequacy of evidence for prima-facie case.
DGAP investigation period
6 months from receipt of reference + extension up to 3 more months, for reasons recorded in writing, as allowed by the Authority (rule 129(6))
On completion, DGAP furnishes report and relevant records to the Authority. Originally 3 months, substituted by 6 from 28.06.2019.
Authority's determination period
6 months from receipt of the DGAP report (rule 133(1))
A hearing is given if an interested party asks in writing (rule 133(2)).
Cooperation and confidentiality
DGAP may seek opinion of other agencies or statutory authorities (rule 131); confidential information is protected under section 11 of the RTI Act, 2005 (rule 130)
DGAP can ask for a non-confidential summary of confidential information.

How to solve Authorities Under Anti-Profiteering Mechanism questions

Use this method for any question on the authorities, whether a case scenario or a short note.

  1. 1Identify the stage of the case: complaint, screening, prima-facie check, investigation, or final order.
  2. 2Name the authority for that stage: Screening Committee, Standing Committee, DGAP or the Authority.
  3. 3State its composition or who nominates it, if the question asks for it.
  4. 4State its function in one line, such as 'examines evidence', 'investigates' or 'determines and orders'.
  5. 5Apply the time limit and the extension rule. Note who allows the extension.
  6. 6State what happens next and which body receives the output.
  7. 7Close with the consequence under the order, if the question reaches that stage.

Quickest way: Pipeline recall: Screen, Standing, DGAP, Authority

When to use it: For MCQs and short case questions asking 'who' or 'within how long'.

  1. Remember the order: Screening (2 months) to Standing (2 months) to DGAP (6 months) to Authority (6 months).
  2. Extensions: 1 month for the first two bodies, 3 months for DGAP.
  3. Remember that local issues go to the Screening Committee first.
  4. Council forms the Standing Committee. State Government forms the Screening Committee.
  5. Eliminate any option that says DGAP decides the case. DGAP only reports.

Common mistakes in Authorities Under Anti-Profiteering Mechanism

  • Saying the DGAP decides whether profiteering has occurred.

    The DGAP does the investigation, so it feels like the final step.

    Fix: DGAP only investigates and reports. The Authority determines under rule 133(1).

  • Writing 'Director General of Safeguards' in the answer.

    Older material uses the earlier name.

    Fix: Use Director General of Anti-profiteering. The substitution has effect from 12.06.2018.

  • Mixing up the DGAP's 6-month limit with the Authority's 6-month limit.

    Both are six months.

    Fix: DGAP's six months run from the Standing Committee reference and can extend by 3 months. The Authority's six months run from the DGAP report.

  • Saying the Screening Committee is formed by the Council.

    Students merge it with the Standing Committee.

    Fix: Council: Standing Committee. State Government: State level Screening Committee.

  • Forgetting who nominates Screening Committee members.

    Two nominators with similar-sounding titles.

    Fix: State officer is nominated by the Commissioner. Central officer is nominated by the Chief Commissioner.

  • Treating all applications as going straight to the Standing Committee.

    The Standing Committee is the more prominent body.

    Fix: Applications on issues of local nature go first to the State level Screening Committee.

Worked examples

Example 1

A consumer in a State complains that a local retailer did not reduce prices after a GST rate cut on a product. Trace the path of the complaint through the authorities, with time limits, up to the final determination.

Show the solution
  1. The issue is local, so the application is first examined by the State level Screening Committee (rule 128(2)).
  2. The Screening Committee has 2 months, extendable by up to 1 month for reasons recorded in writing as allowed by the Authority.
  3. If satisfied that section 171 has been contravened, it forwards the application with recommendations to the Standing Committee.
  4. The Standing Committee examines the accuracy and adequacy of evidence to see if there is prima-facie evidence (rule 128(1)), again within 2 months, extendable by up to 1 month.
  5. If prima-facie evidence exists, it refers the matter to the DGAP for detailed investigation (rule 129(1)).
  6. The DGAP issues notice to interested parties and investigates within 6 months, extendable by up to 3 months (rule 129(6)), then sends the report to the Authority.
  7. The Authority determines within 6 months of receipt of the report whether the benefit was passed on (rule 133(1)). It hears parties if requested in writing.

Answer: Screening Committee, then Standing Committee, then DGAP, then the Authority, with time limits of 2, 2, 6 and 6 months, extendable by 1, 1 and 3 months for the first three bodies.

Example 2

The DGAP has submitted a report to the Authority recommending no contravention for Product A. The Authority suspects the same supplier has profiteered on Product B, not covered in the report. Can it act, and how?

Show the solution
  1. Rule 133(4) lets the Authority refer a matter for further investigation, even where the report recommends non-contravention, if it thinks more inquiry is needed. It must record reasons in writing.
  2. Product B is not covered in the report, so rule 133(5)(a) applies.
  3. If the Authority has reasons to believe section 171 was contravened for other goods or services, it may, for reasons recorded in writing and within the time limit in rule 133(1), direct the DGAP to investigate them.
  4. Under rule 133(5)(b), this is deemed a new investigation, and all provisions of rule 129 apply mutatis mutandis.

Answer: Yes. The Authority may direct the DGAP to investigate Product B for reasons recorded in writing, within the 6-month period. It is treated as a fresh investigation under rule 129.

Exam tips

  • Learn the four time limits and extensions as a single table in your head. MCQs often swap them.
  • Be precise on who constitutes and who nominates. Examiners test Council vs State Government and Commissioner vs Chief Commissioner.
  • In case scenarios, label each step with the authority's name and its output.
  • Use 'Director General of Anti-profiteering' in written answers, and mention the earlier name only if needed.
  • Do not state rates of interest or penalties here. Those belong to the topic on orders of the Authority.

Practice questions from Anti-profiteering

Authorities Under Anti-Profiteering Mechanism in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Authorities Under Anti-Profiteering Mechanism: frequently asked questions

Who forms the Standing Committee on Anti-profiteering?

The Council may constitute it. It consists of officers of the State Government and Central Government nominated by the Council under rule 123(1).

What is the role of the State level Screening Committee?

It first examines applications on issues of local nature, and those forwarded by the Standing Committee. If it is satisfied that section 171 is contravened, it forwards the application with recommendations to the Standing Committee.

What does the DGAP do in an anti-profiteering case?

The DGAP investigates after reference from the Standing Committee. It issues notices, collects evidence, and furnishes a report with records to the Authority. It does not decide the case.

How long does the Authority have to decide a case?

The Authority must determine whether the benefit was passed on within 6 months from receipt of the DGAP report, as per rule 133(1).