On November 16, 2017, the Cabinet set up The National Anti-Profiteering Authority in GST and the main objective of the NAA is to ensure that reduction in GST rates helps down to end consumers. The NAA was formed at the backdrop of the Government’s decision of sharp reduction in GST rates on a large number of items of mass consumption. Almost six months since its formation, the NAA hs so far received 250 complaints from consumers on its website. The NAA has rolled up its sleeves and is looking very seriously into the complaints to ensure that e-commerce companies, as well as retailers, passed on the benefits from, GST reductions to the consumers.
The same was confirmed by B.N Sharma, Chairman of The National Anti-Profiteering Authority. He said “We will be asking the e-commerce retailers details on the number of instances where products were sold or delivered after the GST rates were reduced… whether they then passed on the benefit to the buyer because they did not have the authority to collect the extra tax”.
Any discrepancies found post investigation will be dealt with an iron hand. If e-commerce companies profiteered from the reduction in GST, then they would be asked to locate the buyer and refund the additional tax amount to him/her. In case the e-commerce companies fail to identify the buyer then the companies must deposit the refund amount in the Consumer Welfare Fund.
The governments it seems is intent on standing up for consumer rights. Most of the complaints registered are suo moto cases and the government is letting no stone unturned to increase consumer awareness. It has also aligned with social network LocalCircles to run awareness campaigns aimed at increasing consumer awareness and check anti-profiteers. HUL, a major FMCG company has reportedly deposited about approx ₹119 crore in the consumer welfare fund. Nestle also deposited around ₹13 crore to the consumer funds. The Government’s intent is praiseworthy and deserves all the credit.
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FMCG and Real Estate: Taking The Major Hits
The startling observation that has come out since NAA came into being is that Real Estate and FMCG sectors have been the major culprits as far as consumer welfare is concerned. The companies failed to pass on the benefits of input tax credit as well as those of the revised GST rates.