Sanjeev Sharma
Tribune News Service
New Delhi, November 16
A day after notifying a sharp reduction in GST rates for items of mass consumption, the Cabinet today approved setting up of a National Anti-profiteering Authority (NAA) to ensure that benefits of such tariff cuts are passed on to consumers.
The anti-profiteering measures prescribed in the GST law provide an institutional mechanism to ensure the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a standing committee, screening committees in every state and the Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC).
A five-member committee, headed by Cabinet Secretary PK Sinha, comprising Revenue Secretary Hasmukh Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states, has been entrusted to finalise the chairman and members of the authority. The authority will have a sunset date of two years from the date on which the chairman assumes charge. The chairman and the four members of the authority have to be less than 62 years.
“The NAA is an assurance to consumers of India. If any consumer feels that the benefit of tax rate cut is not being passed on, then he can complaint to the authority,” Union Minister Ravi Shankar Prasad said after the Cabinet meeting. This reflects the government’s commitment to take all-possible steps to ensure benefits of implementation of GST to the common man, the minister said.
As per the guidelines for consumer appeals, affected consumers who feel the benefit of commensurate reduction in prices is not being passed on when they purchase any goods or services may apply for relief to the screening committee in the particular state. However, 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.
After forming a prima facie view that there is an element of profiteering, the standing sommittee shall refer the matter for a detailed investigation to the Director General of Safeguards, CBEC, which shall report its findings to the National Anti-profiteering Authority .
The Cabinet nod to the anti-profiteering body comes a week after the GST Council had slashed rates for 178 items (from 28 per cent to 18 per cent) in the GST regime. There are now only 50 items which attract 28 per cent GST.
A large number of items have witnessed a reduction in GST rates from 18 per cent to 12 per cent and some goods have been completely exempt from GST.
(with agency inputs)
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