The goods and services tax rate cuts are still not giving benefits to the larger number of people and taking this point into the mind, the government is set to extend the term of National Anti-profiteering Authority (NAA).
Originally the term was up to 2 years which now seems less in front of the frequent rate changes occurring under the GST regime. The major rate cut of 178 products from 28 to 18 percent done the previous year.
And such a major rate change is yet to bring different and benefits to the general public and for this, the government wants to extend the terms of National Anti-profiteering Authority (NAA).
According to the official statement by the finance ministry, “NAA was established to address profiteering concerns during the (two-year) GST transition period. It was believed that market competition would ensure that businesses pass on the benefits of tax reduction to consumers. But experience so far shows that regulatory force is needed to achieve that goal.”
Also seeing the upcoming prospect of GST rate inclusion of 12 percent and 18 percent into one and also the pending discussion over petrol under GST is also the key reason to continue the NAA beyond its 2 years term.
It is easy to extend the term of National Anti-profiteering Authority (NAA) as there are only general anti-profiteering rules and not SGST and CGST rules applicable on the panel.
NAA is authority formed to prevent manufacturers and businesses to hold GST rate cut benefits which they in return compare the product price before and after the rate revision.
