Government plans to set up anti-profiteering body

New Delhi: Concerned over increasing complaints of profiteering being receiving from all parts of the country after the implementation of GST, the Centre plans to set up a national anti-profiteering authority, which will protect consumers’ interest by ensuring that benefits of reduced prices of certain commodities post the new tax regime, are passed on to consumers. Similarly, it will take action against entities which are found to be indulging in profiteering by abnormally hiking prices of products.

Sources privy to development said that the Union Cabinet, which is to meet on October 4, is likely to clear the proposal of setting up of a national anti-profiteering authority. The proposed authority will be a part of the GST Council which is headed by the Union finance minister Arun Jaitley. Sources further informed that rules regarding the formation of the authority have been framed and it will have certain number of members to deal with complaints. Complaints of illegal profiteering have been filtering in from several quarters, with the common grouse being that consumers are being overcharged by shops and super-markets citing higher prices of goods owing to the new taxation system.

The proposal for setting up of a national anti-profiteering authority was mooted to provide a platform for consumers to register their complaints regarding differential or incremental pricing being indulged in by shopkeepers and super markets, citing GST implementation.

The proposed authority will have powers to investigate complaints of profiteering, and it may even take punitive action against such entities like imposing penalties on them.

Sources said that there is a likelihood that the authority may have power to ask the concerned trader or shopkeeper or retail outlet to either pass on the benefit of reduced pricing of a commodity post GST to the consumer.