NAA Scolds MNC’s For Holding GST Rate Reduction Benefits

The NAA or the national Anti-profiteering Authority under GST has pulled up MNC’s for not compensating consumers with the benefits accrued from GST rate relaxations. The NAA has also expressed disappointment over the trivial reasons stated by the companies for non-reimbursement of GST benefits.

However, MNC’s complained that adjusting prices for goods and services in nearest decimal points post-GST rate reductions was a difficult exercise to implement.

Reportedly, most companies have reduced the prices of large packets. But doing the same for smaller packets is demanding as in most cases the price cut is around very few decimal points.

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The NAA unimpressed by the MNC’s revert has asked them to adjust the variables in the number of items If adjusting the price is beyond their scope.

The NAA has questioned that why don’t such companies take advantage of the provisions of the Legislative Measurement Act to stabilize the nearest decimal point to transfer benefits to the end consumer?

The Section 171 of the Central GST Act mandates passing of benefits from GST rate reduction or rationalization to end consumers. The Directorate General of Anti-Profiteering, previously known as Directorate General of Safeguard, was set up in November 2018 in this regard.

The Director General of Safeguards, CBEC has also carried an investigation in this regard. Sources revealed that the reason stated by most companies are beyond the grasp of the Directorate General. Companies have failed to clarify the reason behind price cuts on limited products only. The reason for not reducing the prices of some products are vague.