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CMA Final · Indirect Tax Laws and Practice · Anti-profiteering

Under the CGST Rules on anti-profiteering, the Director General of Anti-profiteering received a reference from the Standing Committee on 1 February. By what latest date must the investigation be completed if the maximum extension is allowed by the Authority?

The latest date is 1 November. Rule 129(6) gives the Director General six months from receipt of the Standing Committee's reference, extendable by up to a further three months for reasons recorded in writing as allowed by the Authority, making nine months in total from 1 February.

  1. A1 August, being six months with no further extension
  2. B1 November, being six months plus a further three monthsCorrect
  3. C1 May, being three months plus a further three months
  4. D1 February of the next year, being twelve months

Explanation

Rule 129(6) requires completion within six months of receipt of the reference, extendable by a period not exceeding a further three months for reasons recorded in writing, as allowed by the Authority. Six plus three months from 1 February gives 1 November. The three-month base period was the old period before substitution.

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