While talking about the most controversial anti-profiteering authority under the new Goods and Services Tax (GST) law, Revenue Secretary Hasmukh Adhia said that the authoority will investigate only those cases that have mass impact and not small cases of alleged undue profits.
Once constituted by the GST Council, the national anti-profiteering authority will be responsible for applying anti-profiteering measures in cases where a reduction in tax incidence or the benefit of input tax credit has not been passed on to customers by way of a commensurate reduction in prices.
Recently, the GST Council has formed a selection committee under cabinet secretary PK Sinha to identify and recommend eligible persons for appointment as the chairman and members of national anti-profiteering authority.
As proposed, the authority will be headed by a secretary-level officer and assisted by four technical members, will lapse after two years. “The authority will take up cases of mass importance. It will not look into small cases, but no monetary threshold has been fixed for cases to be picked up for scrutiny by the authority,” Adhia said.
The complaints will be processed through a three-tier structure consisting of a standing committee at the GST Council level and a screening committee in each state. Any application seeking to revoke anti-profiteering measures will be examined by the central standing committee, but in case the business concerned is located in only one state, it will be taken up by screening committee in that state. Additionally, the standing committee is empowered to refer cases requiring detailed enquiry to the director general of safeguards in the Central Board of Excise and Customs (CBEC), who will give his recommendation for consideration of the authority.
The Committee has the power to apply anti-profiteering measures to appropriate case and can order the concerned business to reduce its prices or return the undue benefit availed along with interest to the recipient of the goods or service.
If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the consumer welfare fund within a stipulated time. Separately, in extreme cases the authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST, the government said, and added that the constitution of the authority is expected to bolster consumer confidence.
