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GST anti-profiteering provisions: Not so profitable anymore

One of the grey area is whether the anti-profiteering provisions can provide for a comparison of tax rates between the pre-GST and post-GST eras?

GST
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GST

Niraj Bagri
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
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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