Skip to content

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

Which statement about the Authority referred to in section 171(2) of the CGST Act is correct?

The Central Government, on the recommendations of the GST Council and by notification, may either constitute an Authority or empower an existing Authority under any law in force to examine whether tax rate reductions or input tax credit benefits led to commensurate price reductions.

  1. AThe State Government constitutes it on the advice of the GST Council
  2. BThe Central Government may, on recommendations of the Council, notify an Authority or empower an existing Authority to examine commensurate price reductionCorrect
  3. CIt is constituted by the GST Council directly without any notification
  4. DOnly a newly created body may be appointed; an existing Authority under another law cannot be empowered

Explanation

Section 171(2) lets the Central Government, on the Council's recommendations and by notification, constitute an Authority or empower an existing Authority under any law in force. The other options misstate who acts or deny the empowerment route.

Did you get it right without looking?

One question tells you little. A timed set on Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative shows your real accuracy, how long you take and where you lose marks.

Practise Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised RepresentativeFree diagnostic mock

More Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative questions