The clause for anti-profiteering has emerged quite a while ago when the finance ministry first announced that any company found blocking the tax benefits to the consumers will be penalized and also various other severe measures will be taken against them. Now a second warning has been surfaced from the revenue Secretary Hasmukh Adhia, who has cautioned the country’s big corporates, saying that if there is any hike in prices for the intentions of profits before the GST implementation, then the income-tax department can also scrutinize their books and accounts.
The actions will be taken at the behest of consumer protection. Simultaneously, the Government has asked the industries to stop price hike till July period of GST as it will hamper the economic conditions. He has confirmed that if any industry which is found in anti-profiteering activity and has increased its prices than his business books may be examined by the concerned authority.
Revenue Secretary Hasmukh Adhia cautioned the companies and industry, saying that in the GST law, stringent prohibition provisions were necessary so that the benefits of reduction in taxation can be ensured to the customers. Along with this, he also said that the Income Tax Department will also try to stop big companies from profiteering.
He suggested that big companies and industry can stop the price hike till the implementation of the GST which will impact the overall ecosystem in a good manner. Otherwise, it would be a serious issue of cost escalation, which they can not afford immediately. After which, Revenue Secretary Adhia warned that despite this, if you increase the price in the name of the cost, then the further investigation can be done.
There are various laws and regulations set by the apex GST council to stop any illegal measure and the minister also accounted the same as there is a provision in the GST Act to set up a Prevention of Incentive Authority, which will decide whether or not companies are giving the benefits of tax reduction to the customers. Last week, the GST Council has placed more than 1200 items and 500 services into slabs 5, 12, 18 and 28 per cent.
The government estimates that despite 18 percent extra standard tax, the service provider will get ‘input tax credit‘ and this will reduce the impact of GST. Mr. Adhiya assured that the prices of many items will be low including Foodgrains which will have a huge effect as it has been in category zero. The anti-profiteering measures are strict and the government is in full activeness to apply this clause in order to ensure consumer safety and economic development.
