GST Authority against Anti-profit

GST Authority will take strict action against Anti-profit.

Ø  The proposed anti-profiteering authority under the new GST regime will take up for scrutiny only those cases where undue profit of more than Rs 1 crore has been earned.

Ø  A five member National Anti-Profiteering Authority, headed by a secretary-level officer, will be set up soon to keep a tab on businesses that have not passed on to consumers the benefit of lower tax rates under the Goods and Services Tax (GST) regime. 

Ø  Authority will take two to three month’s time to confirm whether the benefits of GST are being passed on to consumers.

Ø  There  will be Different screening committee to receive the complaints at State level and National Level

Ø  GST Implementation Committee (GIC) will decide which case to give to state screening committee.

Ø  The investigation must be finished within the 3 Months.

Ø  After finding the anti-profiteering the authority will pass the order in another 3 months.

Ø  The issues which have a national or mass impact will be taken up by the authority.

Ø  There may be many small cases which would be coming to the GIC, but only those cases where the financial implication is more than Rs 1 crore would be taken up by the authority. Rest would be transferred to the state screening committee.

Ø  The anti-profiteering authority, if it finds that a company has not passed on the GST benefits, will either direct it to pass on the benefits to consumers or if the beneficiary cannot be identified will ask the company to transfer the amount to the consumer welfare fund within a specified timeline. 

Ø  According to the authority undue profit will attract interest @18% P.A. in addition to penalty.

Ø  A five member committee, will be there to monitor the Anti- profiting.

 Tenure of the committee will be for just two years unless the GST Council extends the tenure.