Anti-profiteering
Today we are discussed about the most
important topic that is the benefit of Gst will be transferred to the ultimate
buyer.
National Anti-profiteering Authority is
therefore being constituted by the central Government to examine whether input
tax credits availed by any registered person or the reduction in the tax rate
have actually resulted in a commensurate reduction in the price of the goods or
services or both supplied by him, this is to ensure that the consumer is
protected from arbitrary price increase in the name of GST. The implementation of GST law has brought
benefits to both consumers and businesses
Let us understand anti
profiteering with an example. The tax rate on meals in restaurants has
approximately reduced to 18% from the initial 20.5%. This means the food
supplier should technically sell a Rs.100 worth food item for Rs.118 now and
not Rs.120.5. As per the Anti Profiteering rules, this benefit of reduced tax
rate should be passed on to the consumer in the form of reduced price.
Constitution of the Authority:
The National Anti-Profiteering Authority shall be a
five member committee consisting of a Chairman who holds or has held a post
equivalent in rank to a Secretary to the Government of India; and four
Technical Members who are or have been Commissioners of State tax or central
tax or have held an equivalent post under existing laws.
Power to determine the methodology and procedure:
The Authority
can 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.
Duties of the Authority:
The Authority would have the following duties:
(i)
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;
(ii)
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;
(iii)
to order,
(a)
reduction in prices;
(b)
imposition of penalty; and
(c)
Cancellation of registration.
(d)
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 per cent. 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 Consumer Welfare Fund;
