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Anti-Profiteering committee to ensure passing of GST benefits gets cabinet nod

Updated: Nov 17, 2017 10:34:57am
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Anti-Profiteering committee to ensure passing of GST benefits gets cabinet nod

New Delhi, Nov 17 (KNN) The Union Cabinet on Thursday approved the setting up of National Anti-Profiteering Authority to ensure that the benefit of any tax cut and input tax credit (ITC) under the GST regime passed on to the consumers. Section 171 of the CGST Act states that that any reduction in the rate of tax on supply of goods or services, or the benefit of input tax credit, shall be passed on to the recipient (consumer) by way of a commensurate reduction in prices.

This approval comes in the backdrop of GST council’s decision to reduce GST rates. GST council on Friday announced reduction of GST    rates for around 200 items, only 50 products are under 28% slab now.  GST rate on the AC and Non AC restaurants has been slashed from 18 percent to 5 percent with ITC (Input Tax Credit) withdrawn because most of the restaurants have failed to pass on the benefit of ITC (Input Tax Credit) to their customers.

Law Minister Ravi Shankar Prasad told reporters after the Cabinet meeting that The National Anti-Profiteering Authority is an assurance to consumers of India and any consumer can complain to the authority if he feels that the benefit of tax rate cut is not being passed on.

According to a government release any affected consumer may complain to the authority and   in case the incident of profiteering relates to an item of mass impact with ‘all-India’ ramification, the application may be directly made to the standing committee.

The Non-profiteering authority will have the power cancel the registration of any business if it is found to be non-compliant of the anti-profiteering norms under GST. If the authority finds that a company has not passed on the benefits, it can direct the entity to pass on the benefits to consumers along with interest at the rate of 18 per cent from the date of collection of the higher amount till the date of return of such amount. (KNN/AG)

COMMENTS

  1. Vaish
    Vaish 17/11/2017 1:42 PM

    Small and micro enterprises should be kept out of the mischief of this authority, else they will be another blow to this sector.

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