SC notifies the federal government about the GST anti-profiteering rules.

In response to an appeal against the Delhi High Court's January 29 ruling upholding the constitutionality of the anti-profiteering provisions of the Central Goods and Services Tax Act and the creation of the National Anti-Profiteering Authority (NAA), the Supreme Court on Monday served notice to the government.
Because of the GST law's anti-profiteering rules, sellers of goods and services are required to pass on any tax rate reductions or input tax credit benefits to users in the form of corresponding price reductions.

Excel Rasayan filed an appeal, claiming that the provisions are "manifestly arbitrary and violative of Article 14 of the Constitution of India" because they do not provide a methodology or objective parameters for computing profiteering. A bench led by Chief Justice DY Chandrachud served notice to the Finance ministry, the National Anti-profiteering Authority, its Director General, the Central Board of Indirect Taxes and Customs, and the GST Council. According to the petitioner, the definition of "commensurate benefit," which is essential for identifying profiteering, is not included in the requirements.
Counsel Abhishek A. Rastogi contended that the clauses equate to the Executive sub-delegating to the National Anti-Profiteering Authority the powers that Parliament has delegated to it as important legislative functions. He said that the measures go beyond Parliament's ability to enact laws under Article 246A of the Constitution.

Over 100 companies, including Hindustan Unilever, Patanjali, Jubilant Foodworks, Reckitt Benckiser, Phillips, Gillette India, Procter and Gamble Home Products, and several others, had moved the HC against the anti-profiteering provisions. The HC upheld the law on the grounds that it “eliminates the levy of multiple taxes, avoids any cascading tax effect, streamlines the credit mechanism by weeding out distortions in the supply chains and ensures a smooth pass-through and transparent mechanism for levying tax."