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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 statements about anti-profiteering under section 171 of the CGST Act is correct?

The correct statement is that penalty is ten per cent of the profiteered amount and that the expression Authority includes the Appellate Tribunal. The Government may also notify a cut-off date for accepting requests for examination, and there is no twenty per cent rate.

  1. AThe expression Authority excludes the Appellate Tribunal
  2. BThe Government cannot fix a date after which the Authority stops accepting requests for examination
  3. CPenalty of ten per cent is on the amount profiteered, and 'Authority' includes the Appellate TribunalCorrect
  4. DPenalty is twenty per cent of the amount profiteered if deposited after thirty days

Explanation

Section 171(3A) fixes the penalty at ten per cent of the profiteered amount, with no higher rate. Explanation 2 states that 'Authority' includes the Appellate Tribunal. The proviso to sub-section (2) lets the Government notify, on Council recommendations, the date after which requests for examination are not accepted.

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