Cabinet approves setting up of anti-profiteering body under GST

Raft of commonly used goods from furniture to sanitary ware, electrical fittings, detergents, marble flooring and toiletries, among others now fall at 18 percent tax slab. Alongside, taxes on six items have been cut from 18 to 5 percent, in eight items from 12 to 5 percent and from 5 to zero percent in six items.

The new rates were applicable since Wednesday, November 15.

Also read: Full list of revised GST rates for 178 categories of goods

NAA will be headed by a senior officer secretary-level official, with four technical members from the Centre and states. The framework of the body comprises a standing committee, screening committees in every state as well as the Directorate General of Safeguards.

“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 in the particular state,” the release said.

However, in case the incident of profiteering relates to an item of mass impact with 'All India' ramification, the application has to be directly sent to the standing committee.

If the standing committee is able to conclude that there is an element of profiteering, then the matter will be referred for detailed investigation to DG Safeguards, which shall report its findings to the NAA.

Further, if NAA confirms there is a necessity to apply anti-profiteering measures, it has the authority to order the accused business to reduce its prices or return the undue benefit availed by it along with interest to the recipient of the goods and services, the release said.

“If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases, the NAA can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST,” it said.