[This article is authored by Himangini Mishra and Arunima Phadke, students at the Gujarat National Law University, Gandhinagar. It attempts to examine the constitutionality of the anti profiteering law and the National Anti-Profiteering Authority.]


The anti-profiteering mechanism was introduced with an aim to ensure that the benefit of transitioning from the VAT system of taxation to a much simpler Goods and Services Taxation system, reaches the aimed beneficiaries. The concept of anti-profiteering was introduced for the first time in India after taking inspiration from the countries with the existing GST system. Thereby, for the greater part, it is dependent on the legislature for guidance as to the procedure and powers. The anti-profiteering mechanism even though, introduced to benefit the consumers, presents an immaculate example of legislative negligence vide rules and regulations; bestowing power within the three-tier Anti-profiteering monitoring system. The constitutionality of the Section 171 CGST, 2017 and Rule 126, CGST Rules, 2017 has been challenged several times in the High Courts across the country, until the Supreme Court transferred all the petitions in front of the Delhi High Court in February, 2020. The present paper examines the vires of Anti-Profiteering laws, along with that of the National Anti-Profiteering Authority.