Anti Profiteering Rules - Goods and Services Tax 19.6.2017 | Learn About GST : Updates and Rules PDF Download

 Page 1


Anti-profiteering Rules, 2017 
 
In exercise of the powers conferred by section 164 read with section 171 of the Central 
Goods and Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the 
following rules, namely :-	
 
1. Short title, extent and commencement.- 
(1) These rules may be called the Anti-profiteering Rules, 2017. 
(2) They extend to the whole of India except the State of Jammu and Kashmir. 
(3) They shall come into force on the date of their publication in the Official 
gazette. 
2. Definitions.- 
In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017; 
(b) “Committee” means the Standing Committee on Anti-profiteering constituted by the 
Council in terms of sub-rule (1) of rule 4 of these rules; 
(c) “Screening Committee” means the State level Screening Committee constituted in 
terms of sub-rule (2) of rule 4 of these rules;  
(d) “Authority” means the National Anti-profiteering Authority constituted under rule 3;  
(e) “interested party” includes- 
(i) suppliers of goods or services under the proceedings; and 
(ii) recipients of goods or services under the proceedings; 
 
(f) Words and expressions used and not defined herein but defined in the Act, shall have 
the same meaning respectively, assigned to them, in the Act. 
3. Constitution of the Authority.-  
The Authority shall consist of-  
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the 
Government of India; and 
(i)  
(b) four Technical Members who are or have been Commissioners of State tax or 
central tax or have held an equivalent post under the existing law,   
-to be nominated by the Council. 
4. Constitution of the Standing Committee and Screening Committees.- 
(1) The Council may constitute a Standing Committee on Anti-profiteering which 
shall consist of such officers of the State Government and Central Government as may be 
nominated by it . 
Page 2


Anti-profiteering Rules, 2017 
 
In exercise of the powers conferred by section 164 read with section 171 of the Central 
Goods and Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the 
following rules, namely :-	
 
1. Short title, extent and commencement.- 
(1) These rules may be called the Anti-profiteering Rules, 2017. 
(2) They extend to the whole of India except the State of Jammu and Kashmir. 
(3) They shall come into force on the date of their publication in the Official 
gazette. 
2. Definitions.- 
In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017; 
(b) “Committee” means the Standing Committee on Anti-profiteering constituted by the 
Council in terms of sub-rule (1) of rule 4 of these rules; 
(c) “Screening Committee” means the State level Screening Committee constituted in 
terms of sub-rule (2) of rule 4 of these rules;  
(d) “Authority” means the National Anti-profiteering Authority constituted under rule 3;  
(e) “interested party” includes- 
(i) suppliers of goods or services under the proceedings; and 
(ii) recipients of goods or services under the proceedings; 
 
(f) Words and expressions used and not defined herein but defined in the Act, shall have 
the same meaning respectively, assigned to them, in the Act. 
3. Constitution of the Authority.-  
The Authority shall consist of-  
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the 
Government of India; and 
(i)  
(b) four Technical Members who are or have been Commissioners of State tax or 
central tax or have held an equivalent post under the existing law,   
-to be nominated by the Council. 
4. Constitution of the Standing Committee and Screening Committees.- 
(1) The Council may constitute a Standing Committee on Anti-profiteering which 
shall consist of such officers of the State Government and Central Government as may be 
nominated by it . 
(2) A State level Screening Committee shall be constituted in each State by the 
State Governments which shall consist of-  
(a) one officer of the State Government, to be nominated by the Commissioner, and  
(b) one officer of the Central Government, to be nominated by the Chief 
Commissioner.  
5. Appointment, salary, allowances and other terms and conditions of service of the 
 Chairman and Members of the Authority:- 
(1) The Chairman and Members of the Authority shall be appointed by the Central 
Government on the recommendations of a Selection Committee to be 
constituted for the purpose by the Council 
(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other 
allowances and benefits as are admissible to a Central Government officer 
holding posts carrying the same pay. Where a retired officer is selected as a 
Chairman, he shall be paid a monthly salary of Rs. 2,25,000 reduced by the 
amount of pension. 
(3) The Technical Member shall be paid a monthly salary of Rs. 2,05,400 (fixed) 
and shall be entitled to draw allowances as are admissible to a Government of 
India officer holding Group ‘A’ post carrying the same pay. Where a retired 
officer is selected as a Technical Member, he shall be paid a monthly salary of 
Rs. 2,05,400 reduced by the amount of pension. 
(4) The Chairman shall hold office for a term of two years from the date on which 
he enters upon his office, or until he attains the age of sixty- five years, 
whichever is earlier and shall be eligible for reappointment. A person shall not 
be selected as the Chairman if he has attained the age of sixty-two years. 
(5) The Technical Member of the Authority shall hold office for a term of two 
years from the date on which he enters upon his office, or until he attains the 
age of sixty-five years, whichever is earlier and shall be eligible for 
reappointment. A person shall not be selected as a Technical Member if he has 
attained the age of sixty-two years. 
6. Secretary to the Authority 
The Additional Director General of Safeguards under the Board shall be the Secretary to 
the Authority. 
7. Power to determine the methodology and procedure:- 
 
The Authority may determine the methodology and procedure for determination as to 
whether the reduction in rate of tax on the supply of goods or services or the benefit 
Page 3


Anti-profiteering Rules, 2017 
 
In exercise of the powers conferred by section 164 read with section 171 of the Central 
Goods and Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the 
following rules, namely :-	
 
1. Short title, extent and commencement.- 
(1) These rules may be called the Anti-profiteering Rules, 2017. 
(2) They extend to the whole of India except the State of Jammu and Kashmir. 
(3) They shall come into force on the date of their publication in the Official 
gazette. 
2. Definitions.- 
In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017; 
(b) “Committee” means the Standing Committee on Anti-profiteering constituted by the 
Council in terms of sub-rule (1) of rule 4 of these rules; 
(c) “Screening Committee” means the State level Screening Committee constituted in 
terms of sub-rule (2) of rule 4 of these rules;  
(d) “Authority” means the National Anti-profiteering Authority constituted under rule 3;  
(e) “interested party” includes- 
(i) suppliers of goods or services under the proceedings; and 
(ii) recipients of goods or services under the proceedings; 
 
(f) Words and expressions used and not defined herein but defined in the Act, shall have 
the same meaning respectively, assigned to them, in the Act. 
3. Constitution of the Authority.-  
The Authority shall consist of-  
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the 
Government of India; and 
(i)  
(b) four Technical Members who are or have been Commissioners of State tax or 
central tax or have held an equivalent post under the existing law,   
-to be nominated by the Council. 
4. Constitution of the Standing Committee and Screening Committees.- 
(1) The Council may constitute a Standing Committee on Anti-profiteering which 
shall consist of such officers of the State Government and Central Government as may be 
nominated by it . 
(2) A State level Screening Committee shall be constituted in each State by the 
State Governments which shall consist of-  
(a) one officer of the State Government, to be nominated by the Commissioner, and  
(b) one officer of the Central Government, to be nominated by the Chief 
Commissioner.  
5. Appointment, salary, allowances and other terms and conditions of service of the 
 Chairman and Members of the Authority:- 
(1) The Chairman and Members of the Authority shall be appointed by the Central 
Government on the recommendations of a Selection Committee to be 
constituted for the purpose by the Council 
(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other 
allowances and benefits as are admissible to a Central Government officer 
holding posts carrying the same pay. Where a retired officer is selected as a 
Chairman, he shall be paid a monthly salary of Rs. 2,25,000 reduced by the 
amount of pension. 
(3) The Technical Member shall be paid a monthly salary of Rs. 2,05,400 (fixed) 
and shall be entitled to draw allowances as are admissible to a Government of 
India officer holding Group ‘A’ post carrying the same pay. Where a retired 
officer is selected as a Technical Member, he shall be paid a monthly salary of 
Rs. 2,05,400 reduced by the amount of pension. 
(4) The Chairman shall hold office for a term of two years from the date on which 
he enters upon his office, or until he attains the age of sixty- five years, 
whichever is earlier and shall be eligible for reappointment. A person shall not 
be selected as the Chairman if he has attained the age of sixty-two years. 
(5) The Technical Member of the Authority shall hold office for a term of two 
years from the date on which he enters upon his office, or until he attains the 
age of sixty-five years, whichever is earlier and shall be eligible for 
reappointment. A person shall not be selected as a Technical Member if he has 
attained the age of sixty-two years. 
6. Secretary to the Authority 
The Additional Director General of Safeguards under the Board shall be the Secretary to 
the Authority. 
7. Power to determine the methodology and procedure:- 
 
The Authority may determine the methodology and procedure for determination as to 
whether the reduction in rate of tax on the supply of goods or services or the benefit 
of input tax credit has been passed on by the registered person to the recipient by way 
of commensurate reduction in prices. 
 
8. Duties of the Authority- It shall be the duty of the Authority:- 
(1) to determine whether any reduction in rate of tax on any supply of goods or 
services or the benefit of the input tax credit has been passed on to the 
recipient by way of commensurate reduction in prices; 
(2) to identify the registered person who has not passed on the benefit of reduction 
  in rate of tax on supply of goods or services or the benefit of input tax credit to 
  the recipient by way of commensurate reduction in prices; 
(3) to order, 
(a) reduction in prices; 
(b) return to the recipient, an amount equivalent to the amount not 
passed on by way of commensurate reduction in prices along 
with interest at the rate of eighteen percent from the date of 
collection of higher amount till the date of return of such 
amount or 
recovery of the amount not returned in case the eligible person 
does not claim return of the amount or is not identifiable, and 
depositing the same in the Fund referred to in section 57 
(c) imposition of penalty as prescribed under the Act; and 
(d) cancellation of registration under the Act. 
 
9. Examination of application by the Standing Committee and Screening 
Committee.- 
(1) The Standing Committee shall, within a period of two months from the date of 
receipt of a written application, in such form and manner as may be specified by it, 
from an interested party or from a Commissioner or any other person, examine the 
accuracy and adequacy of the evidence provided in the application to determine 
whether there is prima-facie evidence to support the claim of the applicant that the 
benfit of reduction in rate of tax on any supply of goods or services or the benefit of 
input tax credit has not been passed on to the recipient by way of commensurate 
reduction in prices. 
(2) All applications from interested parties on issues of local nature shall first be 
examined by the State level Screening Committee and the Screening Committee shall, 
upon being satisfied that the supplier has contravened the provisions of section 171, 
forward the application with its recommendations to the Standing Committee for 
further action.  
 
10. Initiation and conduct of proceedings:- 
Page 4


Anti-profiteering Rules, 2017 
 
In exercise of the powers conferred by section 164 read with section 171 of the Central 
Goods and Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the 
following rules, namely :-	
 
1. Short title, extent and commencement.- 
(1) These rules may be called the Anti-profiteering Rules, 2017. 
(2) They extend to the whole of India except the State of Jammu and Kashmir. 
(3) They shall come into force on the date of their publication in the Official 
gazette. 
2. Definitions.- 
In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017; 
(b) “Committee” means the Standing Committee on Anti-profiteering constituted by the 
Council in terms of sub-rule (1) of rule 4 of these rules; 
(c) “Screening Committee” means the State level Screening Committee constituted in 
terms of sub-rule (2) of rule 4 of these rules;  
(d) “Authority” means the National Anti-profiteering Authority constituted under rule 3;  
(e) “interested party” includes- 
(i) suppliers of goods or services under the proceedings; and 
(ii) recipients of goods or services under the proceedings; 
 
(f) Words and expressions used and not defined herein but defined in the Act, shall have 
the same meaning respectively, assigned to them, in the Act. 
3. Constitution of the Authority.-  
The Authority shall consist of-  
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the 
Government of India; and 
(i)  
(b) four Technical Members who are or have been Commissioners of State tax or 
central tax or have held an equivalent post under the existing law,   
-to be nominated by the Council. 
4. Constitution of the Standing Committee and Screening Committees.- 
(1) The Council may constitute a Standing Committee on Anti-profiteering which 
shall consist of such officers of the State Government and Central Government as may be 
nominated by it . 
(2) A State level Screening Committee shall be constituted in each State by the 
State Governments which shall consist of-  
(a) one officer of the State Government, to be nominated by the Commissioner, and  
(b) one officer of the Central Government, to be nominated by the Chief 
Commissioner.  
5. Appointment, salary, allowances and other terms and conditions of service of the 
 Chairman and Members of the Authority:- 
(1) The Chairman and Members of the Authority shall be appointed by the Central 
Government on the recommendations of a Selection Committee to be 
constituted for the purpose by the Council 
(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other 
allowances and benefits as are admissible to a Central Government officer 
holding posts carrying the same pay. Where a retired officer is selected as a 
Chairman, he shall be paid a monthly salary of Rs. 2,25,000 reduced by the 
amount of pension. 
(3) The Technical Member shall be paid a monthly salary of Rs. 2,05,400 (fixed) 
and shall be entitled to draw allowances as are admissible to a Government of 
India officer holding Group ‘A’ post carrying the same pay. Where a retired 
officer is selected as a Technical Member, he shall be paid a monthly salary of 
Rs. 2,05,400 reduced by the amount of pension. 
(4) The Chairman shall hold office for a term of two years from the date on which 
he enters upon his office, or until he attains the age of sixty- five years, 
whichever is earlier and shall be eligible for reappointment. A person shall not 
be selected as the Chairman if he has attained the age of sixty-two years. 
(5) The Technical Member of the Authority shall hold office for a term of two 
years from the date on which he enters upon his office, or until he attains the 
age of sixty-five years, whichever is earlier and shall be eligible for 
reappointment. A person shall not be selected as a Technical Member if he has 
attained the age of sixty-two years. 
6. Secretary to the Authority 
The Additional Director General of Safeguards under the Board shall be the Secretary to 
the Authority. 
7. Power to determine the methodology and procedure:- 
 
The Authority may determine the methodology and procedure for determination as to 
whether the reduction in rate of tax on the supply of goods or services or the benefit 
of input tax credit has been passed on by the registered person to the recipient by way 
of commensurate reduction in prices. 
 
8. Duties of the Authority- It shall be the duty of the Authority:- 
(1) to determine whether any reduction in rate of tax on any supply of goods or 
services or the benefit of the input tax credit has been passed on to the 
recipient by way of commensurate reduction in prices; 
(2) to identify the registered person who has not passed on the benefit of reduction 
  in rate of tax on supply of goods or services or the benefit of input tax credit to 
  the recipient by way of commensurate reduction in prices; 
(3) to order, 
(a) reduction in prices; 
(b) return to the recipient, an amount equivalent to the amount not 
passed on by way of commensurate reduction in prices along 
with interest at the rate of eighteen percent from the date of 
collection of higher amount till the date of return of such 
amount or 
recovery of the amount not returned in case the eligible person 
does not claim return of the amount or is not identifiable, and 
depositing the same in the Fund referred to in section 57 
(c) imposition of penalty as prescribed under the Act; and 
(d) cancellation of registration under the Act. 
 
9. Examination of application by the Standing Committee and Screening 
Committee.- 
(1) The Standing Committee shall, within a period of two months from the date of 
receipt of a written application, in such form and manner as may be specified by it, 
from an interested party or from a Commissioner or any other person, examine the 
accuracy and adequacy of the evidence provided in the application to determine 
whether there is prima-facie evidence to support the claim of the applicant that the 
benfit of reduction in rate of tax on any supply of goods or services or the benefit of 
input tax credit has not been passed on to the recipient by way of commensurate 
reduction in prices. 
(2) All applications from interested parties on issues of local nature shall first be 
examined by the State level Screening Committee and the Screening Committee shall, 
upon being satisfied that the supplier has contravened the provisions of section 171, 
forward the application with its recommendations to the Standing Committee for 
further action.  
 
10. 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 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 Director General of Safeguards for a detailed investigation. 
(2) The Director General of Safeguards shall conduct investigation and collect 
evidence necessary to determine whether the benefit of reduction in rate of tax 
on any supply of goods or services or the benefit of the input tax credit has 
been passed on to the recipient by way of commensurate reduction in prices. 
 
(3) The Director General of Safeguards shall, before initiation of investigation, 
issue a notice to the interested parties containing, inter alia, information on the 
following, namely:- 
(a) the description of the goods or services in respect of which the proceedings 
have been initiated; 
(b) summary of statement of facts on which the allegations are based; and 
(c) the time limit allowed to the interested parties and other persons who may 
have information related to the proceedings for furnishing their reply. 
(4) The Director General of Safeguards may also issue notices to such other 
persons as deemed fit for fair enquiry into the matter. 
 
(5) 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 proceedings. 
(6) The Director General of Safeguards shall complete the investigation within a 
period of three months of receipt of 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. 
 
11. Confidentiality of information:- 
 
(1) Notwithstanding anything contained in sub-rules (3) and (5) of rule 10 and 
sub-rule (2) of rule 14, the provisions of section 11 of the Right to Information 
Act, 2005 shall apply mutatis mutandis to the disclosure of any information 
which is provided on a confidential basis. 
(2) The Director General of Safeguards may require the parties providing 
information on confidential basis to furnish non-confidential summary thereof 
and if, in the opinion of the party providing such information, the said 
information cannot be summarised, such party may submit to the Director 
General of Safeguards a statement of reasons why summarisation is not 
possible. 
Page 5


Anti-profiteering Rules, 2017 
 
In exercise of the powers conferred by section 164 read with section 171 of the Central 
Goods and Services Tax Act, 2017(12 of 2017) the Central Government hereby makes the 
following rules, namely :-	
 
1. Short title, extent and commencement.- 
(1) These rules may be called the Anti-profiteering Rules, 2017. 
(2) They extend to the whole of India except the State of Jammu and Kashmir. 
(3) They shall come into force on the date of their publication in the Official 
gazette. 
2. Definitions.- 
In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017; 
(b) “Committee” means the Standing Committee on Anti-profiteering constituted by the 
Council in terms of sub-rule (1) of rule 4 of these rules; 
(c) “Screening Committee” means the State level Screening Committee constituted in 
terms of sub-rule (2) of rule 4 of these rules;  
(d) “Authority” means the National Anti-profiteering Authority constituted under rule 3;  
(e) “interested party” includes- 
(i) suppliers of goods or services under the proceedings; and 
(ii) recipients of goods or services under the proceedings; 
 
(f) Words and expressions used and not defined herein but defined in the Act, shall have 
the same meaning respectively, assigned to them, in the Act. 
3. Constitution of the Authority.-  
The Authority shall consist of-  
(a) a Chairman who holds or has held a post equivalent in rank to a Secretary to the 
Government of India; and 
(i)  
(b) four Technical Members who are or have been Commissioners of State tax or 
central tax or have held an equivalent post under the existing law,   
-to be nominated by the Council. 
4. Constitution of the Standing Committee and Screening Committees.- 
(1) The Council may constitute a Standing Committee on Anti-profiteering which 
shall consist of such officers of the State Government and Central Government as may be 
nominated by it . 
(2) A State level Screening Committee shall be constituted in each State by the 
State Governments which shall consist of-  
(a) one officer of the State Government, to be nominated by the Commissioner, and  
(b) one officer of the Central Government, to be nominated by the Chief 
Commissioner.  
5. Appointment, salary, allowances and other terms and conditions of service of the 
 Chairman and Members of the Authority:- 
(1) The Chairman and Members of the Authority shall be appointed by the Central 
Government on the recommendations of a Selection Committee to be 
constituted for the purpose by the Council 
(2) The Chairman shall be paid a monthly salary of Rs. 2,25,000 (fixed) and other 
allowances and benefits as are admissible to a Central Government officer 
holding posts carrying the same pay. Where a retired officer is selected as a 
Chairman, he shall be paid a monthly salary of Rs. 2,25,000 reduced by the 
amount of pension. 
(3) The Technical Member shall be paid a monthly salary of Rs. 2,05,400 (fixed) 
and shall be entitled to draw allowances as are admissible to a Government of 
India officer holding Group ‘A’ post carrying the same pay. Where a retired 
officer is selected as a Technical Member, he shall be paid a monthly salary of 
Rs. 2,05,400 reduced by the amount of pension. 
(4) The Chairman shall hold office for a term of two years from the date on which 
he enters upon his office, or until he attains the age of sixty- five years, 
whichever is earlier and shall be eligible for reappointment. A person shall not 
be selected as the Chairman if he has attained the age of sixty-two years. 
(5) The Technical Member of the Authority shall hold office for a term of two 
years from the date on which he enters upon his office, or until he attains the 
age of sixty-five years, whichever is earlier and shall be eligible for 
reappointment. A person shall not be selected as a Technical Member if he has 
attained the age of sixty-two years. 
6. Secretary to the Authority 
The Additional Director General of Safeguards under the Board shall be the Secretary to 
the Authority. 
7. Power to determine the methodology and procedure:- 
 
The Authority may determine the methodology and procedure for determination as to 
whether the reduction in rate of tax on the supply of goods or services or the benefit 
of input tax credit has been passed on by the registered person to the recipient by way 
of commensurate reduction in prices. 
 
8. Duties of the Authority- It shall be the duty of the Authority:- 
(1) to determine whether any reduction in rate of tax on any supply of goods or 
services or the benefit of the input tax credit has been passed on to the 
recipient by way of commensurate reduction in prices; 
(2) to identify the registered person who has not passed on the benefit of reduction 
  in rate of tax on supply of goods or services or the benefit of input tax credit to 
  the recipient by way of commensurate reduction in prices; 
(3) to order, 
(a) reduction in prices; 
(b) return to the recipient, an amount equivalent to the amount not 
passed on by way of commensurate reduction in prices along 
with interest at the rate of eighteen percent from the date of 
collection of higher amount till the date of return of such 
amount or 
recovery of the amount not returned in case the eligible person 
does not claim return of the amount or is not identifiable, and 
depositing the same in the Fund referred to in section 57 
(c) imposition of penalty as prescribed under the Act; and 
(d) cancellation of registration under the Act. 
 
9. Examination of application by the Standing Committee and Screening 
Committee.- 
(1) The Standing Committee shall, within a period of two months from the date of 
receipt of a written application, in such form and manner as may be specified by it, 
from an interested party or from a Commissioner or any other person, examine the 
accuracy and adequacy of the evidence provided in the application to determine 
whether there is prima-facie evidence to support the claim of the applicant that the 
benfit of reduction in rate of tax on any supply of goods or services or the benefit of 
input tax credit has not been passed on to the recipient by way of commensurate 
reduction in prices. 
(2) All applications from interested parties on issues of local nature shall first be 
examined by the State level Screening Committee and the Screening Committee shall, 
upon being satisfied that the supplier has contravened the provisions of section 171, 
forward the application with its recommendations to the Standing Committee for 
further action.  
 
10. 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 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 Director General of Safeguards for a detailed investigation. 
(2) The Director General of Safeguards shall conduct investigation and collect 
evidence necessary to determine whether the benefit of reduction in rate of tax 
on any supply of goods or services or the benefit of the input tax credit has 
been passed on to the recipient by way of commensurate reduction in prices. 
 
(3) The Director General of Safeguards shall, before initiation of investigation, 
issue a notice to the interested parties containing, inter alia, information on the 
following, namely:- 
(a) the description of the goods or services in respect of which the proceedings 
have been initiated; 
(b) summary of statement of facts on which the allegations are based; and 
(c) the time limit allowed to the interested parties and other persons who may 
have information related to the proceedings for furnishing their reply. 
(4) The Director General of Safeguards may also issue notices to such other 
persons as deemed fit for fair enquiry into the matter. 
 
(5) 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 proceedings. 
(6) The Director General of Safeguards shall complete the investigation within a 
period of three months of receipt of 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. 
 
11. Confidentiality of information:- 
 
(1) Notwithstanding anything contained in sub-rules (3) and (5) of rule 10 and 
sub-rule (2) of rule 14, the provisions of section 11 of the Right to Information 
Act, 2005 shall apply mutatis mutandis to the disclosure of any information 
which is provided on a confidential basis. 
(2) The Director General of Safeguards may require the parties providing 
information on confidential basis to furnish non-confidential summary thereof 
and if, in the opinion of the party providing such information, the said 
information cannot be summarised, such party may submit to the Director 
General of Safeguards a statement of reasons why summarisation is not 
possible. 
 
 
12. Cooperation with other agencies or statutory authorities:- 
Where the Director General of Safeguards deems fit, he may seek opinion of any 
other agency or statutory authorities in discharge of his duties. 
 
13. Power to summon persons to give evidence and produce documents:- 
(1) The Director General of Safeguards, or an officer authorized by him in this 
behalf, shall be deemed to be the proper officer to exercise power to summon 
any person whose attendance he considers necessary either to give evidence or 
to produce a document or any other thing under section 70 and shall have 
power in any inquiry in the same manner, as provided in the case of a civil 
court under the provisions of the Code of Civil Procedure, 1908 (5 of 1908). 
(2) Every such inquiry referred to in sub-rule (1) shall be deemed to be a “judicial 
proceedings” within the meaning of section 193 and section 228 of the Indian 
Penal Code (45 of 1860). 
 
14.	 Order of the Authority:- 
(1) The Authority shall, within a period of three months from the date of receipt of the 
report from the Director General of Safeguards determine whether a registered 
person has passed on the benefit of reduction in 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. 
(2) An opportunity of hearing shall be granted to the interested parties by the 
Authority where any request is received in writing from such interested parties.  
(3) Where the Authority determines that a registered person has not passed on the 
benefit of reduction in 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, 
the Authority may order - 
(a) reduction in prices; 
(b) return to the recipient, an amount equivalent to the amount not 
passed on by way of commensurate reduction in prices along 
with interest at the rate of eighteen percent from the date of 
collection of higher amount till the date of return of such 
amount or  
recovery of the amount including interest not returned in case 
the eligible person does not claim return of the amount or is not 
identifiable, and depositing the same in the Fund referred to in 
section 57;  
(c) imposition of penalty as prescribed under the Act; and 
(d) cancellation of registration under the Act.