New Delhi, Sept. 3 -- As the GST Council examines the next wave of reforms to simplify India's indirect tax system, policymakers are grappling with a familiar concern-corporate profiteering. States want firmer safeguards to ensure that the tax relief intended for consumers is not pocketed by companies.Mint looks at what profiteering means under GST, how it has been policed so far, and what lies ahead for consumers and businesses.

When the GST Council reduces the tax rate on goods or services or allows businesses additional credit for taxes paid on raw material or services, the authorities expect it to translate into an immediate and commensurate reduction in the prices of goods and services to the consumer.

In the case of successive tax...