GST – GST FAQ 3rd Edition – December, 2018 – 25 – 25. Anti-profiteering provisions Q 1. What is profiteering? Ans. In terms of Section 171 of the CGST Act, 2017, the suppliers of goods and services should pass on the benefit of any reduction in the rate of tax or the benefit of input tax credit to the recipients by way of commensurate reduction in prices. The wilful action of not passing on the above benefits to the recipients in the manner prescribed is known as profiteering . Q 2. What is the background to providing statutory provisions on anti-profiteering in GST law? Ans. The Study Report titled Implementation of Value Added Tax (VAT) in India-Lessons for transition to GST released by the Comptroller & Auditor General (C&AG) of India in June, 2010 mentioned about several cases of profiteering by dealers by not passing on the benefit of tax rate reduction to the consumers in the wake of implementation of VAT in the country. The above C&AG report, after checking the reco
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rity shall cease to exist after the expiry of two years from the date on which the Chairman of the Authority enters upon his office unless the GST Council recommends otherwise. Q 5. What are some of the instances in which the statutory provisions of anti-profiteering will kick in? Ans. The different situations in which Section 171 of CGST Act, 2017 & the identical provision in State/ UT GST Act will get attracted include: i. reduction in tax rate; ii. benefit of Input Tax Credit (ITC) available to the registered person/ supplier. Q 6. What is the function of National Anti-Profiteering Authority (NAA)? Ans. The National Anti-Profiteering Authority (NAA) is required to determine whether the benefit of input tax credit or reduction in the tax rate has actually resulted in a commensurate reduction in the price of the goods or services or both. The NAA has the power to identify the registered person who has not passed on the benefit of reduction in tax rate or input tax credit by way of
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rs of goods and services can register their complaints against profiteering: a. Online complaint facility: Complainant can register an online complaint at http://www.naa.gov.in/complaint.php Link to see the guidelines to register online complaint: http://www.naa.gov.in/page.php?id=guidelines-forconsumers b. Via Mail: User can mail the complaint at: Agencies Mail-Id Nature of the complaint Standing Committee sc.antiprofiteering@gov.in anti-profiteering@gov.in Complaints involving issues of all-India nature. State-Screening Committees For State-wise E-mail Addresses please refer to: http://www.naa.gov.in/docs/screening%20committees%2020-08-18.xlsx Complaints involving issues of local nature. c. By Post: Agencies Postal Addresses National Anti-profiteering Authority National Anti-profiteering Authority Dept. of Revenue, Ministry of Finance 6th Floor, Tower One Jeevan Bharati Building Connaught Place New Delhi-110 001. Directorate General of Anti-Profiteering & Standing Committee Direc
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g (erstwhile DG, Safeguards) for a detailed investigation, if prima facie evidence of profiteering exists. 4. The DG, Anti-Profiteering shall conduct the investigation and submit its report to the National Anti-Profiteering Authority (NAA) constituted by the Central Government under section 171 (2) of the CGST Act, 2017 for taking appropriate action, as mentioned in the Answer to Q 6. above. Q 10. How can one file complaint against profiteering? Ans. An online complaint can be filed at http://www.naa.gov.in/complaint.php. Complaints of the nature of national-level can be filed by e-mail at sc.antiprofiteering@gov.in. Complaints of local nature can be sent by mail to the respective State Screening Committee. Q 11. Whether one form is sufficient for multiple goods or services? Ans. No, the prescribed application form APAF-01 is with reference to a single Good/Service. In case of application for multiple Goods/Services, separate application for each Good/Service is required to be filed. Q
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ufacturers or packers or importers of pre-packaged commodities to affix new MRP labels (after incorporating tax changes due to GST) in addition to existing MRP for three months from 1st Jul to 30th Sept 2017. Similar action was taken after the GST rate reduction in November, 2017 and July, 2018. Q 14. What can buyers do if shopping malls and retail stores are still selling goods at pre-GST affixed labels? Ans. As per the Government s directive, shopping malls and retail stores are required to affix two MRP labels reflecting both pre-GST & post-GST prices. Despite this, if consumers find that retailers are selling goods at pre-GST affixed labels, they can report to National Consumer Helpline. Also, the administrative machinery of the Controller of Legal Metrology can be effectively used by States/UTs to monitor & resolve such cases. Q 15. How can buyers of under-construction flats benefit from the anti-profiteering provisions? Ans. Section 171 of the CGST Act, 2017 can be invoke
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redit allowed under Section 140 (3) of the CGST Act, 2017, is required to be passed on to the recipient by way of reduced prices. Q 17. What is the time-frame for deciding cases of anti-profiteering provisions? Ans. The maximum time envisaged for resolution of cases is 9 months excluding the time taken by the State-level screening committee and the Standing Committee (maximum 2 months) for processing the complaints. Q 18. What should a complainant ensure while submitting complaint to Screening Committee/ Standing Committee? Ans. The complainant should submit a duly filled in application form APAF-01 along with his identification document and evidence of profiteering. The instructions for filling the said form are contained in form APAF-01. Q 19. A company in order to justify the prices being charged by it may have to submit information which could be confidential and may impact its business interest? Ans. The provisions of section 11 of the Right to Information Act, 2005, shall apply m
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