National anti-profiteering authority to be set up

The government is committed to ensure the benefits of implementation of GST in terms of lower prices of the goods and services reach consumers

GN Bureau | November 16, 2017


#Narendra Modi   #Cabinet   #National Anti-profiteering   #GST  


The cabinet on Thursday approved the establishment of the National Anti-profiteering Authority under GST.

The cabinet chaired by prime minister Narendra Modi has given its approval for the creation of the posts of chairman and technical members of the National Anti-profiteering Authority (NAA) under GST, following up on sharp reduction in the GST rates of a large number of items of mass consumption.

This paves the way for the immediate establishment of this apex body, which is mandated to ensure that the benefits of the reduction in GST rates on goods or services are passed on to the consumers by way of a reduction in prices.

The establishment of the NAA is a measure aimed at reassuring consumers that the government is fully committed to take all possible steps to ensure the benefits of implementation of GST in terms of lower prices of the goods and services reach them, said a PIB release.

It may be recalled that effective from midnight of November 14, 2017, the GST rate has been slashed from 28% to 18% on goods falling under 178 categories. There are now only 50 items which attract the GST rate of 28%. Likewise, a large number of items have witnessed a reduction in GST rates from 18% to 12% and so on and some goods have been completely exempt from GST.

The "anti-profiteering" measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a standing Committee, screening committees in every state and the directorate general of safeguards in the Central Board of Excise & Customs (CBEC).

Affected consumers who feel the benefit of commensurate reduction in prices is not being passed on when they purchase any goods or services may apply for relief to the screening committee in the particular state. However, in case the incident of profiteering relates to an item of mass impact with 'All India' ramification, the application may be directly made to the standing committee. After forming a view that there is an element of profiteering, the standing committee shall refer the matter for detailed investigation to the Director General of Safeguards, CBEC, which shall report its findings to the NAA.

In the event the NAA confirms there is a necessity to apply anti-profiteering measures, it has the authority to order the supplier/business concerned to reduce its prices or return the undue benefit availed by it along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases, the NAA can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST.

 

Comments

 

Other News

Leadership skills you should hone/develop to grow in life

American author, speaker, and pastor John Calvin Maxwell once said, “A leader is one who knows the way, goes the way and shows the way. Leadership is a skill that some naturally possess, while some hone it over the course of their lives. When we think of leadership, our minds automatically drift to the s

India’s overall exports cross all-time high of $750 billion

India’s overall exports, including services and merchandise, have crossed US$750 billion, minister of commerce and industry Piyush Goyal has announced. This is an all-time high and this achievement comes in the 75th year of independence as we celebrate the Azadi Ka Amrit Mahotsav. Addr

Climate actions being implemented to deal with impact of heat waves

India’s climate actions cut across various sectors and are being implemented through various programs and schemes of different union ministries, departments and state/ union territory governments.  The government of India through concerned ministries and departments organises workshops, exhibiti

Banks must hear borrowers before declaring their accounts as frauds: SC

In a judgment with far-reaching implications, the Supreme Court has held that the civil consequences of an account being declared as fraud under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016 or its Master Directions on Fraud amount to ci

India’s forest cover increases by 5,516 sq km in four years

The Dehradun-based Forest Survey of India (FSI), an organization under the Ministry of Environment, Forests and Climate Change, carries out the assessment of forest cover biennially since 1987 and the findings are published in the India State of Forest Report (ISFR). As per the latest ISFR 2021, there is a

Steps taken to meet higher power demand of April-May

While the average growth of energy requirement in the country for 2023-24 viz-a-viz 2022-23 has been estimated as 4.9%, the months of April and May have been projected as high demand period. During the current year, the peak demand is expected to be around 229 GW during the summer period. The government ha

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter