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

Which of the following correctly describes a power the Central Government has under Section 171(2) regarding the anti-profiteering Authority?

The Central Government may, on the Council's recommendations, notify the date after which the Authority will stop accepting requests for examination of profiteering. It has no power under this section to fix selling prices, raise the penalty above ten per cent, or exempt persons from passing on benefits.

  1. AIt may, on the Council's recommendations, notify the date from which the Authority will not accept any request for examinationCorrect
  2. BIt may fix the price at which each registered person must sell goods
  3. CIt may require the Authority to levy penalty of twenty per cent of the profiteered amount
  4. DIt may exempt any registered person from passing on input tax credit benefit by order

Explanation

The proviso to Section 171(2) lets the Government, on the Council's recommendations, specify by notification the date from which the Authority shall not accept any request for examination. The Act contains no power to fix prices or exempt persons, and the penalty is ten per cent, not twenty.

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