National Anti-profiteering  Authority 

Prelims

National Anti-profiteering  Authority

National Anti-profiteering Authority Created

National Anti-profiteering Authority shall be responsible for applying anti-profiteering measures in the event of a reduction in rate of GST on supply of goods or services or, if the benefit of input tax credit is not passed on to the recipients by way of commensurate reduction in prices.

Section 171 of the CGST Act says that any reduction in rate of tax on any esupply of goods or services or the benefit of input tax credit (ITC) shall be passed on to the recipient by way of commensurate reduction in prices.

Further, the Central Government may, on recommendations of the Council, by notification, constitute an Authority to examine whether ITC 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.

As per the ‘Anti-Profiteering Rules’, National Anti-profiteering  Authority  will be constituted soon.

National Anti-profiteering Authority – Constitution 

The Authority shall consist of –

1. The Chairman, who holds or has held a post equivalent in rank to a Secretary to the Government of India; &

2. Four  – Technical Members who are or have been Commissioners of State tax or central tax or have held an equivalent post, to be nominated by the Council.

National Anti-profiteering Authority  – Committees

1. The Council may constitute a Standing Committee on Anti-profiteering which consists of such officers of the State Government and Central Government as required.

2. A State level Screening Committee shall be constituted in each State by the State Governments which shall consist of-

Related Topics  Advance Pricing Agreement

a. One officer of the State Government, to be nominated by the Commissioner, &

b. One officer of the Central Government, to be nominated by the Chief Commissioner.

National Anti-profiteering  Authority  – Highlights

National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed alongwith 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 National Anti-profiteering Authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST.

Power to determine the methodology and procedure:-

The Authority may determine the methodology and procedure for determination as to whether the reduction in 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

National Anti-profiteering Authority  – Duties

(1) To determine whether any reduction in rate of tax on any supply of goods or services or the benefit of the 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 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;

Related Topics  Directorate General of Revenue Intelligence

(3) To order reduction in prices;

(b) To Order 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 higher amount till the date of return of such amount or recovery of the amount not returned 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

(c) To Order imposition of penalty as prescribed under the Act; and

(d)  To Order cancellation of registration under the Act.

National Anti-profiteering Authority  – Monitoring of the order:-

The Authority may require any authority of central tax, State tax or Union territory tax to monitor implementation of the order passed by it.

Tenure of Authority.-

The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise

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Raja Raja Cholan
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