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[F. No. CBIC-20/2/2022-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
New Delhi, the 23rd November, 2022
Notification No. 23/2022 – Central Tax: Seeks to empower the Competition Commission of India to handle anti-profiteering cases under CGST Act, 2017 with effect from 01.12.2022.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (ii)]
S.O…...(E).- In exercise of the powers conferred by sub-section (2) of section 171 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Goods and Services Tax Council, hereby empowers the Competition Commission of India established under sub-section (1) of section 7 of the Competition Act, 2002 (12 of 2003), 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.
2. This notification shall come into force with effect from 1st day of December, 2022.
(Vikram Vijay Wanere)
Under Secretary
📚 Frequently Asked Questions (FAQs): Notification No. 23/2022 - Central Tax
Q1: What is Notification No. 23/2022 – Central Tax about?
Answer:
This notification, issued on 23rd November 2022, empowers the Competition Commission of India (CCI) to examine cases of anti-profiteering under Section 171(2) of the CGST Act. It ensures that reductions in GST rates or benefits from input tax credit (ITC) are passed on to consumers by way of reduced prices. The notification is effective from 1st December 2022.
Q2: What does “anti-profiteering” mean under GST?
Answer:
Anti-profiteering refers to ensuring that businesses pass on the benefit of tax rate reductions or ITC to customers. This is done by lowering the selling price instead of retaining the benefit as extra profit. The GST Council introduced this to protect consumer interest and ensure fair market practices.
Q3: What powers has CCI received under this notification?
Answer:
CCI can now:
Investigate whether businesses are passing on GST benefits.
Examine price changes after a GST rate cut or ITC claim.
Recommend penalties or corrective actions if violations are found.
Q4: Why is the Competition Commission of India involved in GST compliance?
Answer:
The CCI is an expert body on market competition and pricing practices. Assigning anti-profiteering responsibilities to CCI streamlines enforcement and ensures professional handling of cases while replacing the earlier National Anti-profiteering Authority (NAA) setup.
Q5: How does this affect GST-registered businesses?
Answer:
Businesses must:
✅ Pass on GST benefits to customers without delay.
✅ Maintain transparent pricing records.
✅ Ensure compliance to avoid penalties, interest, or reputational damage.
For full GST compliance assistance, visit Finodha GST Compliance Services.
Q6: From when does this change take effect?
Answer:
The provisions of Notification No. 23/2022 – Central Tax are effective from 1 December 2022.
Q7: What happens if a business fails to comply with anti-profiteering rules?
Answer:
Non-compliance can result in:
Price reduction orders.
Refund of overcharged amounts to customers.
Penalties and interest.
Suspension of GST registration in extreme cases.
Q8: How can businesses prepare for compliance under this new framework?
Answer:
Regularly review product pricing.
Document GST rate change impacts.
Consult GST experts like Finodha GST Professionals for compliance.
Use automated accounting tools for transparency.
Q9: Is this applicable to all sectors?
Answer:
Yes ✅. The anti-profiteering provisions under Section 171 apply to all goods and services covered under GST, regardless of the industry.
Q10: How is this linked to earlier GST amendments?
Answer:
This notification follows recent GST Council decisions to streamline anti-profiteering enforcement by transferring powers from the NAA to the CCI for faster resolution of cases.
🔍 Summary:
Notification No. 23/2022 – Central Tax marks a major shift in anti-profiteering enforcement by empowering the CCI to handle such cases under GST from 1 December 2022. Businesses must ensure price reductions match GST benefits, or risk strict penalties.
Download PDF: Notification No. 23/2022 - Central Tax
More Information: https://taxinformation.cbic.gov.in/
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