How will Customs enforce the GST profit margin rule?

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Customs Will Conduct Random Checks to Enforce GST Profit Margin Rule

The Customs Department will enforce the Goods and Services Tax (GST) profit margin rule by conducting random checks on businesses. This measure is intended to prevent traders from opportunistically increasing their profit margins during the 15-month period following the introduction of the GST. Businesses found to be flouting this directive will face penalties.
Random Checks to Monitor Profit Margins

Enforcers from the Customs Department are scheduled to carry out random checks to ascertain if traders have indeed increased their profit margins. This initiative aims to ensure compliance with the directive that businesses maintain their existing profit margins for 15 months after the GST is implemented.
Moratorium on Profit Margin Increases

Businesses are explicitly prohibited from increasing their profit margins for a duration of 15 months from the introduction of the GST. For instance, if a business previously operated with a 10 per cent profit margin, it cannot raise this percentage during the specified moratorium period.
Penalties for Non-Compliance

The Customs Department has warned that businesses that fail to adhere to the profit margin moratorium will be penalised. While the directive regarding profit margins is clear, the specific laws or penalties that will be applied to ensure compliance have not been detailed.

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How will Customs enforce the GST profit margin rule?

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