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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

Under the anti-profiteering provision, the amount 'profiteered' is best described as the amount determined on account of:

Profiteered means the amount arising because the supplier did not pass on the benefit of a tax rate reduction or of input tax credit to the recipient through a commensurate reduction in the price of goods or services.

  1. ANot passing the benefit of rate reduction or input tax credit to the recipient by commensurate price reductionCorrect
  2. BExcess input tax credit claimed in the return over the credit ledger balance
  3. CAny increase in the base price of goods after a rate cut
  4. DTax short-paid by the supplier on the outward supply

Explanation

The Explanation to section 171 defines 'profiteered' as the amount arising from not passing the benefit of rate reduction or input tax credit to the recipient through a commensurate price reduction. Short payment of tax or excess credit are different defaults handled under other provisions.

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