UPSC Express

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

Three-step procedure:

• 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.