National Anti-Profiteering Authority:
• According to anti-profiteering clause of GST, it is mandatory to pass on the benefits due to reduction in rate of tax or from input tax credit to the consumer as an anti-profiteering measure.
• The authority will decide on levying penalty if businesses do not pass on the benefit of price reduction to consumers under the goods and services tax regime.
Composition of Anti-profiteering Authority
• It will be a five member body.
• The Authority will be headed by:-
• Either a retired High Court judge
• Or a member of the Indian Legal Service, having minimum three years of experience at the level of Additional Secretary or higher
Power of National Anti-Profiteering Authority:
• To issue notices to anybody that it feels warrants a fair enquiry
• To order a reduction in prices
• To impose a penalty
• To cancel the registration of a company deemed to have not passed profit on a tax rate reduction to consumers
• From the detection of anti-profiteering to the decision of the Authority, three-step procedure has to be followed:
• Step1 – Standing Committee would receive written complaints from anyone about profiteering practices and review the evidences prima facie.
• Step2 – Director-General of Safeguards (DGS) would conduct detailed inquiry of the complaint and complete its investigation within three months of receiving the reference from the Standing Committee.
• Step3 -National Anti-Profiteering Authority will have three months to issue its verdict following the inquiry by DGS.
• The entire procedure from investigation to verdict cannot exceed nine months.