GST anti-profiteering body sharpens vigil on firms

Faster moving consumer goods (FMCG) companies, restaurant chains and even some of the automakers are under the lens of the anti-profiteering authority on Goods and Services Tax (GST) for whether they have passed the benefits of rate cuts to consumers or not.

The government is expected to serve fresh notices to the companies and a probe has begun, officials said.

To protect the interest of consumers, the government has directed manufacturers, packers, importers of pre-packaged commodities to declare the revised retail sale price after the implementation of GST by way of stamping or putting sticker or printing.

There were complaints that many auto companies are not adhering to the norm. FMCGs are violating it too, he said.

The anti-profiteering measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on the supply of goods or services should flow to the consumers. The government has set up national level anti-profiteering authority as well as state-level screening committees on anti-profiteering to look into the complaints of profiteering.

In a written reply to the Rajya Sabha, Minister of State for Finance Shiv Pratap Shukla had recently said that out of 354 petitions, the standing committee of the National Anti-Profiteering Authority has initiated a probe into 53 cases.

Affected consumers who feel the benefit of commensurate reduction in prices is not being passed on when they purchase any goods or services may apply for relief to the screening committee under the state government. However, in case the incident of profiteering relates to an item of mass impact with ‘All India’ ramification, the application may be directly made to the standing committee. After forming a prima facie view that there is an element of profiteering, the standing committee shall refer the matter for detailed investigation to the Director General of Safeguards, CBEC, which shall report its findings to the National Anti-profiteering Authority

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *