GST Anti-Profiteering

  • Examination of application by the Standing Committee and Screening Committee
  • Initiation and conduct of proceedings
  • Power to summon persons to give evidence and produce documents
  • Order of the Authority
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GST Anti-profiteering

The GST in India has a multi tier tax structure. In addition to this, rules the framed there under are much complicated for an average person. Therefore, it is possible that some entities might take advantage under the new regime. The Government has decided to invoke anti profiteering measures to crack down on those who may misuse the laws.

Thus, National Anti-profiteering authority is being made by the central government to check whether the ITC availed by any registered person or reduction in taxes have actually benefited the consumer or not. It is designed to know prices remain under check and business do not pocket all the gain from GST.

Duties of the Authority:
It shall be the duty of the Authority,-
  1. To determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices
  2. To identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices
  3. To order
    1. Reduction in prices
    2. Return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen percent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57
    3. Imposition of penalty as specified in the Act
    4. Cancellation of registration under the Act
  4. To furnish a performance report to the Council by the tenth [day]79 of the close of each quarter.
Procedure followed by Anti-profiteering authority
  • Examination of application by the Standing Committee and Screening Committee
  • Initiation and conduct of proceedings, (Confidentiality of information to be maintained)
  • Power to summon persons to give evidence and produce documents
  • Order of the Authority