The concept of goods and services tax (GST) has been modelled along the lines of the value added tax (VAT) system adopted globally. Taking a cue from what other countries did on the introduction of VAT laws, the government incorporated provisions relating to anti-profiteering, to ensure that any benefit arising to any supplier due to the introduction of GST should reach the buyer.
The anti-profiteering provisions provide for the following:
- If there is a reduction in the rate of tax; or
- If there is any benefit arising out of the input tax credit, then the same should be passed on to the
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