Union Cabinet gives nod to anti-profiteering authority under GST

The Union Cabinet on Thursday approved setting up of a National Anti-profiteering Authority under Goods and Services Tax so as to ensure the benefit of the tax reaches consumers, said Union Law Minister Ravi Shankar Prasad said.

By: Express Web Desk | New Delhi | Published: November 16, 2017 5:36 pm
GST, new GST rates, GST on hotels, HRAEI President Sudesh Poddar, GST, GST Council meet, india news, indian express news The Union Cabinet on Thursday approved setting up of a national anti-profiteering authority under GST to ensure businesses pass on benefits of the tax to consumers. (picture for representation)

The Union Cabinet on Thursday approved setting up of a National Anti-profiteering Authority (NAA) under Goods and Services Tax so as to ensure the benefit of the tax reaches consumers, said Union Law Minister Ravi Shankar Prasad.

The move comes days after the GST brackets were changed for at least 178 items. Prasad said currently there
are only 50 items which attract the highest tax of 28 per cent under the GST regime and rates on many items have been cut to 5 per cent as well.

“The National Anti-Profiteering Authority is an assurance to consumers of India. If any consumer feels that the benefit of tax rate cut is not being passed on, then he can complaint to the authority,” Prasad told reporters after the Cabinet meeting.

The approval by the Cabinet paves the way for immediate establishment of the apex body, which is mandated to  ensure that the benefits of GST rate reduction is passed on to consumers.

mcdonalds, mcdonald's India, gst, gst on restuarant bill, mcdoanlds post gst tax cut, viral mcdonalds bill, boycott mcdonalds, india news, business news, viral news, indian express A picture of two bills posted by a Twitter user went viral on Thursday which showed the same item bought from the same store at two different base prices. The hike was seen after GST cut. (Source: @sameer_sd/ Twitter)

A five-member committee, headed by Cabinet Secretary P K Sinha, comprising Revenue Secretary Hasmukh Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states, has been entrusted to finalise the chairman and members of the authority.

The authority will have a sunset date of two years from the date on which the chairman assumes charge. The  chairman and the four members of the authority have to be less than 62 years.

As per the structure of the anti-profiteering mechanism in the GST regime, complaints of local nature will be first
sent to the state-level ‘screening committee’, while those of national level will be marked for the ‘Standing Committee’.

If the complaints have merit, the respective committees would refer the cases for further investigation to the Directorate General of Safeguards (DGS). The DG Safeguards would generally take about three months to complete the investigation and send the report to the anti-profiteering authority.

If the authority finds that a company has not passed on GST benefits, it will either direct the entity to pass on the benefits to consumers or if the beneficiary cannot be identified will ask the company to transfer the amount to the ‘consumer welfare fund’ within a specified timeline.

The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator.

According to the anti—profiteering rules, the authority will suggest return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with an 18 per cent interest, as also impose penalty. (With PTI inputs)

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  1. Jagdish Chander
    Nov 17, 2017 at 5:41 am
    Govt is appointing another INSPECTOR for an INSPECTOR RAJ. Does govt feels that the reduction of GST Tax rates would be very often. As the question of passing on the benefits of tax will arise only when tax rates are reduced. If the tax rates are not reduced the authority will be burden on public exchequer.
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      bkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
      Nov 17, 2017 at 4:05 am
      feku sarkar treating GST like a EVM,tampering every day,looks like they are running out of talent,what can you aspect anyway from these chaddies,they are good for nothing,worthless animals of SUWAR chaddi gang
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        Ash
        Nov 17, 2017 at 3:59 am
        Medicines ,spectacles and insulin, which is a lifelong requirement and can be fatal if not taken,are taxed!!Really caring society.Even poor need these items.Medicines and insulin are taxed at the same rate ,5 percent,as imposed on all restaurants,AC or non AC!Isn't this ridiculous?Was jaitley and other ministers feeling the pinch ?Previously rate for non AC and AC restaurants was 12 and 18 percent respectively.Filmstars appeal successfull.All medicines requiring prescription and items of life saving or critical use must be brought to ZERO.Spectacles are being charged at 12 percent and restaurants at 5 percent.Poor don't go to restaurants but they do need to buy spectacles.Will dhabha also be charging GST?Colouring books,exercise books and note books for children, cellphones,diagnostic kits, being charged at 12 .I really think somebody goofed here.Note books and cell phones in same slab?All stationary items required by children must NOT be taxed.Diagnostic kits must be tax free.
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          The Thief Justices a s s ociation of india
          Nov 16, 2017 at 11:14 pm
          National Anti profiteering authority is like National Human Rights Commission. It's job is to send notices and stuff a copy of the notice inside the a s s of it's chairman. And then the next Chairman if NHRC will be demented Dipak Mishra.
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            Maniktripathy
            Nov 16, 2017 at 10:45 pm
            Another agency , another bureaucratic babu and you have a mess...Welcome to the new Emerging India...Rather than streamlining GST, make a mess of it and now another babu led corrupt agency takes shapes in form of supporting the mess...Welcome to the experimental clueless governance...
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              Srinivas
              Nov 17, 2017 at 1:41 am
              No amount of Govt. efforts on public welfare will satisfy non-sensicals like you. If you don't understand the problem, leave alone the process, educate yourself before make ridiculous comments like these.
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                Maniktripathy
                Nov 17, 2017 at 2:00 am
                Well douce bag which social/public welfare is working, right from PDS to NREGA to FSA and all of them are corrupted to the core...Educate yourself before making a foolish comment...
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                  CrystallBall
                  Nov 17, 2017 at 5:17 am
                  Maniktripathy : Well it sounds that you are a perfect creation and everything around you is imperfect .... understood.
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