Emerging issues on Anti-Profiteering under India GST
Specific provisions on anti-profiteering have been legislated in the Goods and Services Tax (‘GST’) law. Anti-profiteering as a concept is not new and there is substantial international precedence (most recently in Malaysia) as well as domestic precedence (by way of parallel concept of unjust enrichment) provided under erstwhile indirect taxation laws.
The anti-profiteering provisions are inherently designed to protect consumer by restricting the companies to benefit unjustly on account of any reduction in GST rates or enhancement in tax credit pool. To this extent, the provisions of anti-profiteering are well understood and are accordingly welcomed.