The concept of anti-profiteering authority has been explained by the Central Board of Excise and Customs (CBEC) on Wednesday.
The document prepared by the National Academy of Customs, Indirect Taxes & Narcotics said that the anti-profiteering authority is a mechanism to examine whether the benefits of implementation of GST such as tax reduction or input tax credits availed by any registered person have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him, this is to ensure that the consumer is protected from arbitrary price increase in the name of GST.
A National Anti-Profiteering Authority, consisting five members including a Chairman will be constituted under the Act.
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.
The Authority can determine the methodology and procedure for determination as to whether the reduction in the 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.
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 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 think necessary.
Within three months on the receipt of the report of the Director General, the authority can pass 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 Authority can direct any authority of central tax, State tax or Union territory tax to monitor the implementation of the order passed by it.
Read the full text of the Concept Note below.
