press trust of india
New Delhi, Jun 20: The proposed anti-profiteering authority can cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the Goods and Services Tax (GST) regime.
According to the anti-profiteering rules issued Tuesday, the five-member National Anti-Profiteering Authority, headed by a secretary-level officer, can order reduction in price commensurate with the lowering of incidence of taxation under the new indirect tax regime.
It also seeks return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with an 18 per cent interest, as also impose penalty. However, the authority, which has been provisioned to be in existence for just two years unless the GST Council extends the tenure, will not be able to take any of these steps suo motu.
A multi-step approach will have to be followed beginning with each state constituting a Screening Committee which will examine written complaints made about any entity or business earning undue profit.
Such panels would have to necessarily dispose of the complaints within two months. Once they are satisfied of the prima facie nature of the complaint, the same would be referred to the Director General of Safeguards for a proper investigation.
The Director General of Safeguards would submit its report to the Authority.
“The Authority shall, within three months from the date of receipt of the report from the Director General of Safeguards determine whether a registered person has passed on the benefit of reduction in rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices,” the rules said.