CMA Final · Indirect Tax Laws and Practice · Anti-profiteering
A supplier is alleged to have not passed on the benefit of a rate reduction. Which statement is correct about the Director General of Anti-profiteering's procedure under the CGST Rules, 2017?
The Director General must issue a notice to interested parties before starting the investigation. It states the description of the goods or services, a summary of the facts on which the allegations are based, and the time limit for replies, as rule 129(3) requires.
- ANotice to interested parties is issued only after the investigation ends, and evidence of one party is kept from the others
- BBefore initiating the investigation, the Director General issues a notice to interested parties describing the goods or services, summarising the facts alleged, and stating the time limit for repliesCorrect
- CThe notice need not mention the description of goods or services, only the time limit
- DOnly the supplier is served; no other person may be noticed
Explanation
Rule 129(3) requires a notice before the investigation begins, containing the description of the goods or services, a summary of the facts, and the time limit for reply. Rule 129(4) allows notices to other persons, and rule 129(5) requires evidence to be shared with the other interested parties. So the other options contradict the rules.
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