Book a demo
IndiaAuditLens Law Library

Rule 126 of the CGST Rules, 2017

From the IndiaAuditLens Law Library

GST›CGST Rules, 2017›Chapter XV, Anti-Profiteering

At a glance

Procedure, powers and definitions

  • 126The Authority may determine how to assess whether a tax-rate reduction or input tax credit benefit has reached the recipient through a commensurate reduction in prices.

Rule 126 empowers the Authority to determine the methodology and procedure for examining whether a registered person has passed on a tax-rate reduction or input tax credit benefit. The required comparison concerns a commensurate reduction in prices for the recipient. The power covers both the method of determining that question and the procedure used to reach the determination.[1]

Text

The text below is the rule as served by the CBIC tax information portal on 24 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Rules as published in the Gazette of India is the legal source.

Rule 126, verbatim (show)

Rule 126. Power to determine the methodology and procedure. -

The Authority may determine the methodology and procedure for determination as to whether the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Actor and express subject of a combined methodology-and-procedure instrument 126

Questions to answer on the file8 questions
Ticks stay in this browser only.
Provisions connected to Rule 126
ProvisionConnectionWords that tie them
Section 171 of the CGST Act, 2017this provision requires Section 171 of the CGST Act, 2017126 "the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit"

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this rule.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 126. Power to determine the methodology and procedure". Central Goods and Services Tax Rules, 2017, CBIC tax information portal. Retrieved 24 September 2026.

External links