With the increase in the complaints received against overcharging of tax under the new Goods and Services Tax (GST) regime, the Finance Ministry may soon come out with a standard operating procedure (SOP) for anti-profiteering rules for properly handling such cases.
Reportedly, as many as 170 complaints have been filed before the standing committee and screening committee by consumers against businesses for not passing on benefits of tax rate reduction since the rollout of Goods and Services Tax (GST) from July 1.
Out of this, 50 have been referred to the Directorate General of Safeguards (DGS) for further investigation on profiteering complaint. The probe in five cases has already begun.
Sources said that it may not be feasible for DGS to scrutinize such large number of complaints and give its report to the National Anti-Profiteering Authority within the stipulated three months. It can also seek an extension of another three months for finalizing the report.
The Standard Operating Procedure (SOP) being worked out by the Ministry will lay down guidelines for the Standing Committee and the screening committee for the handling of consumer complaints.
As per the current scheme, applications from interested parties on issues of local nature shall first be examined by the State level Screening Committee constituted in each State by the State Governments. Later, the screening committee will forward the application with its recommendations to the Standing Committee on Anti-profiteering for further action. The Standing Committee consists of the officers of the State Government and Central Government as may be nominated by the GST Council.
If the Standing Committee is of the opinion that there is a prima facie case, it shall refer the matter to the Director General of Safeguards for a detailed investigation. The Director General of Safeguards can seek the opinion of any other agency or statutory authorities in the discharge of his duties and can summon any persons to take necessary evidence. He must complete the investigation within three months. The Standing Committee can allow a time of further three months if it thinks necessary.
Within three months on the receipt of the report of the Director-General, the authority can pass the order. Any order passed by the Authority shall be immediately complied with by the registered person failing which action shall be initiated to recover the amount in accordance with the provisions of the GST Acts.
The SOP would also lay down the procedure for disposing of the complaints and issuing of the warning to businesses or dealers in case it is warranted.
