New Delhi: Revenue secretary Hasmukh Adhia said on Tuesday that proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases that have mass impact and will not look at small cases of undue profits.
GST Council has formed a selection committee under Cabinet secretary to identify and recommend eligible persons for appointment as the chairman and members of the National Anti-profiteering Authority under GST.
The National Anti-profiteering Authority is tasked with ensuring the full benefits of a reduction in tax on supply of goods or services flow to the consumers.
“When constituted by the GST Council, the national anti-profiteering authority will 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,” the finance ministry said.
The national anti-profiteering authority will be headed by a senior officer of the level of a secretary to the government of India and will have four technical members from the Centre and/or the states.
“In the event the 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 along with the interest to the recipient of the goods or services,” said the ministry.
It said that if 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,” said the ministry.
“The constitution of the National Anti-profiteering Authority is expected to bolster consumer confidence and ensure all stakeholders reap the intended benefits of GST,” said the ministry.
The already notified rules on anti-profiteering measures provide that applications seeking to invoke anti-profiteering measures shall be examined by a Standing Committee.
