The Union Cabinet gave its consent for establishing a National Anti-Profiteering Authority under GST regime as it wants to make sure that the benefits of slashed prices under GST regime reach to common men. Ravi Shankar Prasad, Union Minister, said that under 28% highest tax slab, there are only 50 items after shunning 200 items out and putting many in 5% tax slab. In the meeting of GST council, the tax rates on AC and Non-AC restaurants also lowered to 5%.
He further said, “The National Anti-Profiteering Authority 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 complain to the authority.”
This shows full undertakings of government in taking moves towards render profits of GST to consumers, the minister said. The consent of cabinet opens the roads for the instant foundation of the Anti-profiteering body, which is designated to ascertain that the profits of slashed rates reach to end consumers.
The five-membered anti-profiteering authority is set up to respond the complaints which are filed by consumers in case of a reduced price not reaches to them.
A five-member group consists Cabinet Secretary P K Sinha as a head, CBEC Chairman Vanaja Sarna, Revenue Secretary Hasmukh Adhia, and chief secretaries of two states, which is assigned to choose a chairman and member of the authority.
The authority will be taking in members aged less than 62 years and the authority has a closing date of two years from the date chairman takes the charge.
Under Anti profiteering authority, there would be two committees based on nature of complaints, the local complaint will be sent to the state-level ‘screening committee’ and national level will go in front of the ‘Standing Committee’. Based on the complaints nature it can be further forwarded for investigation to the Directorate General of Safeguards (DGS). DG needs to investigate the complaint within three months and revert back the report to Authority.
If any company has found guilty in not transferring the benefits to the consumer, the authority either tell the company to transfer benefits to the consumer or if the beneficiary is not identified then transfer to mediatory body ‘consumer welfare fund’ in a stipulated time.
The authority has the right to annul the registration of any business if it is found guilty, but it would be certainly the last resort against any offender by the authority.
As per the anti-profiteering provisions, the authority will advise return of the unfair benefit acquired from not transferring the reduced price in any case of a tax to common men with an 18% interest, as also attract penalty charges.
