CBIC Notifies Withdrawal of NAA: CCI to Deal with GST Profiteering Complaints [Read Notification]

CBIC - Notifies - Withdrawal - NAA - CCI - Deal - with - GST - Profiteering - Complaints - TAXSCAN

In a significant move, the Central Board of Indirect Taxes and Customs (CBIC) has notified the withdrawal of the national anti-profiteering authority (NAA)and also notified that the related complaints would be considered by the Competition Commission of India from 1st December 2022.

Ina notification issued on Wednesday, the CBIC has amended the Central Goods and Services Tax (Fourth Amendment) Rules, 2022, and has omitted several rules relating to the constitution of the NAA.

As per the notification, “In the Central Goods and Services Tax Rules, 2017, — (a) rule 122 shall be omitted; (b) rules 124 and 125 shall be omitted; (c) in rule 127,- (i) in the marginal heading, for the word “Duties”, the word “Functions”, shall be substituted; (ii) for the words “It shall be the duty of the Authority,-”, the words “The authority shall discharge the following functions, namely:–” shall be substituted; (d) rule 134 shall be omitted; (e) rule 137 shall be omitted; (f) after rule 137, in the Explanation, for clause (a), the following clause shall be substituted, namely:– ‘(a) “Authority” means the Authority notified under sub-section (2) of section 171 of the Act.”

In another notification, the CBIC notified that “In exercise of the powers conferred by sub-section (2) of section 171 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Goods and Services Tax Council, hereby empowers the Competition Commission of India established under sub-section (1) of section 7 of the Competition Act, 2002 (12 of 2003), to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. This notification shall come into force with effect from the 1st day of December 2022.”

The NAA has been constituted under Section 171 of the Central Goods and Services Tax Act, 2017 to ensure that the reduction in the rate of tax or the benefit of the input tax credit is passed on to the recipient by way of commensurate reduction in prices.

It is primarily constituted by the central government to analyse whether input tax credits availed by any registered person or the reduction in the tax is passed onto the consumer and he/she is protected from the random price increase for self-interests in the name of GST.

The GST Council at its 35th meeting is scheduled on June 21st, under new Finance Minister Nirmala Sitharaman, had decided to give an extension of one year till November 30, 2020, as the authority continues to receive complaints of profiteering by companies.

As per the decision by the Council, NAA will cease to exist from December 1. Henceforth, all investigations, based on complaints filed by consumers, will be done by the Directorate General of Anti-profiteering (DGAP) which will then submit a report to CCI.

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