Anti-profiteering measure
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 171 of the Central Goods and Services Tax Act, 2017 deals with anti-profiteering measure. Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. The Act was enacted on 12 Apr 2017.
(1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.
(2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
1[Provided that the Government may by notification, on the recommendations of the Council, specify the date from which the said Authority shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
Explanation.--- For the purposes of this sub-section, "request for examination" shall mean the written application filed by an applicant requesting for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.]
(3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed.
2[(3A) Where the Authority referred to in sub-section (2), after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub-section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:
Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.
Explanation.3[1]--- For the purposes of this section, the expression "profiteered" shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.]
3[Explanation 2.---For the purposes of this section, the expression "Authority" shall include the "Appellate Tribunal".]
Section 171, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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M/s Devi Theatre 70mm v. Union of India
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 21.06.2024 (order-3.pdf): Interpreting CGST s.171(1), DB held any GST rate cut must be passed on by commensurate price reduction to recipients — cinema ticket prices inclusive of tax must fall automatically when GST rates drop; no exception for delayed understanding of new law, licensing-authority permission, or higher GST remitted to Government. NAA anti-profiteering order upheld; writs dismissed.
On this section: s.171(1) anti-profiteering — suppliers cannot retain GST-rate-cut benefit; ticket price must fall commensurate with rate reduction from 01.01.2019.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
4 instruments name this provision in its title or its text without being made under it.
Questions about Section 171
What have the courts held on Section 171 of the Central Goods and Services Tax Act?
M/s Devi Theatre 70mm v. Union of India (21 Jun 2024) is the leading judgment on this section among those set out below: s.171(1) anti-profiteering — suppliers cannot retain GST-rate-cut benefit; ticket price must fall commensurate with rate reduction from 01.01.2019.
How do I find court cases under Section 171 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 171, section 171 CGST Act, section 171 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with M/s Devi Theatre 70mm v. Union of India (21 Jun 2024).
What should I read with Section 171 of the Central Goods and Services Tax Act, and has it changed?
4 other provisions in this corpus refer back to it. 4 instruments name it without being made under it, most recently Notification No. 65/2020 -Central Tax dated 01.09.2020 (2020), then Notification No. 31/2019 – Central Tax dated 28.06.2019 (2019).
When was Section 171 of the Central Goods and Services Tax Act enacted?
Section 171 of the Central Goods and Services Tax Act, commonly called anti profiteering, and cited as CGST Act 171, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.