Delhi High Court on Monday will hear 51 petitions challenging the constitutional validity of anti-profiteering regulations under the Goods and Services Tax (GST) law.
The petitions, filed by companies like Hindustan Unilever, Jubilant Foodworks, Abbott, Nestle, Whirlpool, IFB, Johnson & Johnson (J&J), etc, seek to first address the question on the constitutional validity of the anti-profiteering law in absence of any methodology to calculate profiteering. The court would also look at the legality and interpretation of Section 171 CGST Act.
According to Section 171 of the CGST Act 2017, suppliers of goods and services should pass the benefit of any reduction in the rate of tax or the benefit of input tax credit to the recipients by way of commensurate reduction in prices.
The court will also look into, apart from other rules, the legality of powers given to the National Anti-profiteering Authority to determine the methodology and procedure for a determination as to whether the reduction in the rate of tax on the supply of goods or services or the benefit of the input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices.