How anti-Profiteering Committee would Initiate & Conduct Proceedings

Rule-129 of CGST Rules 2017

Ini­ti­a­tion and con­duct of proceedings.- 

(1) Where the Stand­ing Com­mit­tee is sat­is­fied that there is a pri­ma-facie evi­dence to show that the sup­pli­er has not passed on  the ben­e­fit of reduc­tion in the rate of tax on the sup­ply of goods or ser­vices or the ben­e­fit of input tax cred­it to the recip­i­ent by way of com­men­su­rate reduc­tion in prices, it shall refer the mat­ter to the Direc­tor Gen­er­al of Safe­guards for a detailed investigation.

• The Direc­tor Gen­er­al of Safe­guards shall con­duct inves­ti­ga­tion and col­lect evi­dence nec­es­sary to deter­mine whether the ben­e­fit of reduc­tion in the rate of tax on any sup­ply of goods or ser­vices or the ben­e­fit of input tax cred­it has been passed on to the recip­i­ent by way of com­men­su­rate reduc­tion in
• The Direc­tor Gen­er­al of Safe­guards shall, before ini­ti­a­tion of the inves­ti­ga­tion, issue a notice to the inter­est­ed par­ties con­tain­ing, inter alia, infor­ma­tion on the fol­low­ing, namely:- 
  • the descrip­tion of the goods or ser­vices in respect of which the pro­ceed­ings have been initiated;
  • sum­ma­ry of the state­ment of facts on which the alle­ga­tions are based; and
  • the time lim­it allowed to the inter­est­ed par­ties and oth­er per­sons who may have infor­ma­tion relat­ed to the pro­ceed­ings for fur­nish­ing their
• The Direc­tor Gen­er­al of Safe­guards may also issue notices to such oth­er per­sons as deemed fit for a fair enquiry into the
• The Direc­tor Gen­er­al of Safe­guards shall make avail­able the evi­dence pre­sent­ed to it by one inter­est­ed par­ty to the oth­er inter­est­ed par­ties, par­tic­i­pat­ing in the

The Direc­tor Gen­er­al of Safe­guards shall com­plete the inves­ti­ga­tion with­in a peri­od of three months of the receipt of the ref­er­ence from the Stand­ing Com­mit­tee or with­in such extend­ed peri­od not exceed­ing a fur­ther peri­od of three months for rea­sons to be record­ed in writ­ing as allowed by the Stand­ing Com­mit­tee and, upon com­ple­tion of the inves­ti­ga­tion, fur­nish to the Author­i­ty, a report of its find­ings along with the rel­e­vant records.