Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129. The DGAP reported that the benefit of reduction in GST rate was not passed on to the recipients by way of commensurate reduction in price. The DGAP has also observed that the allegation of profiteering by way of increasing the base prices of the products w.e.f. 15.11.2017 was sustainable against the Respondent. The Authority observed that the respondent has committed an offence for violation of the provisions of Section 171 (1) and therefore, appears to be liable for imposition of penalty under the provisions of Section 171 (3A) Since the provisions of Section 171 (3A) have come into force w.e.f. 01.01.2020 whereas the period during which violation has occurred is from 01.01.2019 to 30.09.2019 and the Respondent has also deposited the profiteered amount alongwith the interest, therefore, no penalty is proposed to be imposed on the Respondent. The Respondent during hearing submitted that the rate reduction benefit was not passed on to him by his suppliers. Therefore, there arises a need to check whether his supplier has passed on the above benefit to him or not so that the investigation can be taken to its logical end. Accordingly, this Authority

Held that:- The Hon’ble Anti-Profiteering Authority directed the DGAP to gather the information of the Respondent's supplier/s from the Respondent and investigate the entire supply chain under Rule 133(5) and submit the investigation report within 3 months.