Rule 127 - Functions of the Authority

127. [1][Functions] of the Authority.[2]

[3][The authority shall discharge the following functions, namely:–]

(i) to determine whether any 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 prices;

(ii) to identify the registered person who has not passed on the benefit of reduction in the 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;

(iii) 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 per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, 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;

(d) cancellation of registration under the Act.

[4][(iv) to furnish a performance report to the Council by the tenth [5][day] of the close of each quarter.]

[1] Substituted for words “duties” by Rule 2(c)(i) of The CGSTR(4^th A), 2022 vide Notification No. 24/2022-Central Tax dt. 23-11-2022 wef 01-12-2022.

[2] This Rule was inserted by CGST(2^nd A)R, 2017 vide Notification No. 10/2017-Central Tax dt. 28-06-2017 wef 01-07-2017.

[3] Substituted for words “It shall be the duty of the Authority,-” by Rule 2(c)(ii) of The CGSTR(4^th A), 2022 vide Notification No. 24/2022-Central Tax dt. 23-11-2022 wef 01-12-2022.

[4] Clause inserted by Rule 6 of CGST(7^th A)R, 2017 vide Notification No. 34/2017-Central Tax dt. 15-09-2017.

[5] Words inserted by Rule 2(iv) of The CGSTR(3^rd A), 2018 vide Notification No. 14/2018-Central Tax dt. 23-03-2018.

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CHAPTER XV - ANTI-PROFITEERING

Rule 127 - Functions of the Authority