TaxTMI 
TaxTMI 
Anti-profiteering provisions
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....ansition to GST' released by the Comptroller & Auditor General (C&AG) of India in June, 2010 mentioned about several cases of profiteering by dealers by not passing on the benefit of tax rate reduction to the consumers in the wake of implementation of VAT in the country. The above C&AG report, after checking the records of 13 manufacturers in a State in three initial months of implementation of VAT, found that the manufacturers did not reduce the MRP of the goods despite sharp fall in the tax rate post-VAT implementation. As a learning from the VAT experience, legal teeth was sought to be provided in GST law by incorporating anti-profiteering provisions to check profiteering by businesses when GST was being rolled out in the country. Q 3. ....
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....s not passed on the benefit of reduction in tax rate or input tax credit by way of commensurate reduction in prices and it may order reduction in prices; return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest; cancellation of registration of the supplier and imposition of penalty. In case the eligible recipient is not identifiable or does not claim return of the amount, the NAA may order the supplier to deposit the amount in the Consumer Welfare Fund. Q 7. Should a customer pay extra GST on Maximum Retail Price (MRP) affixed on goods? Ans. No. MRP is inclusive of GST and is the maximum retail price that can be charged from the consumers. Q 8. In cases of ov....
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....n, Bhai Vir Singh Marg, Gole Market, New Delhi -110001. Q 9. In cases of profiteering in the name of GST, what is the complaint redressal mechanism available to the consumer? Ans. The CGST Act, SGST Acts & the CGST/ SGST Rules framed thereunder provide for the following complaint redressal mechanism. 1. The aggrieved persons may file an application, in the prescribed format, before the Standing Committee on Anti-profiteering or before the State Level Screening Committee. (If the issue involved is of local nature). 2. The State Level Screening Committee constituted in every State/UT with legislature examines it & forwards it to the Standing Committee constituted at the national level, if a prima facie case of profiteering is made out aga....
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.... the reduction in tax rate on supply of goods or services or benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices. The methodology and procedure adopted to identify cases of profiteering may vary from case to case, depending upon the facts of the case and the nature of goods or services supplied. Q 13. What are some of the measures taken by the Consumer Affairs Ministry in the Government of India to check cases of profiteering post implementation of GST? Ans. The Consumer Affairs Ministry in the Government of India, vide its letter no. WM-10(31)/2017, dated 04.07.2017, permitted the manufacturers or packers or importers of pre-packaged commodities to affix new MRP labels (after ....
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....ng of input taxes on constructed flats & a higher effective tax incidence. But GST regime allows full input tax credit for offsetting the headline rate of 12%, thereby reducing the effective tax incidence. Q 16. Can action be taken under the anti-profiteering provisions in case benefit of transitional credit availed is not passed to the consumers? Ans. The benefit of transitional input tax credit allowed under Section 140 (3) of the CGST Act, 2017, is required to be passed on to the recipient by way of reduced prices. Q 17. What is the time-frame for deciding cases of anti-profiteering provisions? Ans. The maximum time envisaged for resolution of cases is 9 months excluding the time taken by the State-level screening committee and the S....