GST Price Watchdog DGAP Set to Wind Down

GST Price Watchdog DGAP Set to Wind Down

The Directorate General of Anti-Profiteering (DGAP), the dedicated price monitoring and enforcement body under the Goods and Services Tax (GST) regime, is reportedly set to wind down operations.

Key Details and Reason for Closure

• DGAP’s Role: The DGAP was initially established to investigate complaints and verify whether businesses were passing on the benefit of GST rate reductions or the credit from Input Tax Credit (ITC) to the final consumer, as mandated by the anti-profiteering provisions of the GST Act.
• Reason for Winding Down: The body was originally intended to be a temporary mechanism for the initial years of GST implementation (2017 onwards). With the tax system largely stabilized and major rate rationalizations completed, the government now sees its mandate drawing to a close.
• Fate of Pending Probes: The closure will take place after all existing investigations and pending probes are concluded. This ensures that ongoing cases of alleged anti-profiteering are finalized before the body is officially dissolved.
• Future Enforcement: While the DGAP will close, the underlying anti-profiteering function will likely be transferred to the Competition Commission of India (CCI) or another existing regulatory body, ensuring that a mechanism remains in place to address future instances of non-compliance.