18% Interest on GST Anti-Profiteering Amounts has only Prospective Operation w.e.f. April 1, 2020

Last updated: 08 November 2025

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The GST Appellate Tribunal has ruled that the 18% interest on amounts due to anti-profiteering provisions applies only from April 1, 2020, not retrospectively. This means that for profiteering that occurred before this date, interest cannot be charged at this rate. However, the principal profiteered amount must still be deposited.

Court :
NAPA/13/PB/2025, order dated September 10, 2025

Brief :
The GST Appellate Tribunal (GSTAT) Delhi in DGAP v. Procter & Gamble Group [NAPA/13/PB/2025, order dated September 10, 2025], held that the provision for imposition of 18% interest on the anti-profiteering amount under Rule 133(3)(c) of the CGST Rules applies prospectively only to cases arising after June 28, 2019, and is not applicable retrospectively to profiteering occurring between July and October 2018; thus, while the profiteered amount of Rs. 6,88,770/- was confirmed, no interest or penalty was imposed.

Citation :
NAPA/13/PB/2025, order dated September 10, 2025

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