ANTI-PROFITEERING RULES, 2017 – AN OVERVIEW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 21-6-2017
Section 171 of the Goods and Services Tax Act, 2017 ('Act' for short) provides for anti-profiteering measure. Section 171(1) provides that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. Section 171(2) provides that the Central Government may, on the recommendations of the Council, by notification, constitute an Authority, or empowering an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. Section 171(3) provides that the Authority shall exercise such powers and discharge such functi
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is office unless the Council recommends otherwise. The Chairman shall hold office for a term of 2 years from the date he enters into his office or until he attains the age of 65 years, whichever is earlier. He shall be eligible for re-appointment. A person shall not be selected as the Chairman if he has attained the age of 62 years.
The Technical Member shall hold office for a term of 2 years from the date on which he enters upon his office or until he has attains the age of 65 years whichever is earlier. He shall be eligible for reappointment. A person shall not be selected as a Technical Member if he has attained the age of 62 years.
Appointment
The Chairman and Members of the Authority shall be appointed by the Central Government on the recommendations of a Selection Committee to be constituted for the purpose by the Council.
Salary, allowances
The Chairman shall be paid a monthly salary of ₹ 2,25,000/- (fixed) and other allowances and benefits as are admissible to a Cent
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nt to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of 18% from the date of collection of higher amount till the date of return of such amount; or
* recovery of the amount not refund in case the eligible person does not claim return of the amount or is not identifiable and depositing the same in the Fund referred to in section 57;
* imposition of penalty as prescribed under the Act; and
* cancellation of registration under the Act.
The Authority may determine the methodology and procedure for determination as to whether the reduction in rate of tax on the supply of goods or services or the benefit of input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices.
Standing Committee and Screening Committee
Rule 4(1) provides for the constitution of a Standing Committee on Anti-profiteering. This committee shall consist of officers of the State Government and Central G
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satisfied that the supplier has contravened the provisions of section171, forward the application with its recommendations to the Standing Committee for further action.
Further proceedings
The following are the further proceedings-
* The application shall be referred to Director General of Safeguards for a detailed investigation;
* The Director General of Safeguards shall conduct investigation and collect evidence to determine whether the benefit of reduction has been passed on the recipient by way of commensurate reduction in prices;
* The DG shall send a notice to the interested parties for furnishing the following information-
* the description of the goods or services for which the proceedings have been initiated;
* summary of the statement of facts on which the allegations are based; and
* the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply;
* The DG may also issue notices
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o the amount not passed on way by of commensurate reduction in prices along with interest @ 18% from the date of collection of the higher amount till the date of return of such amount or recovery of the amount including interest and depositing the same in the consumer welfare fund.
* Imposition of penalty as prescribed in the Act; and
* Cancellation of registration under the Act.
If the Members differ in opinion on any point the same point shall be decided according to the opinion of the majority.
Compliance
Rule 16 provides that any order passed by the Authority shall be immediately be complied with by the registered person. If he does not comply action shall be initiated to recover the amount.
The Authority may require any authority of central tax, State tax or Union territory tax to monitor implementation of the order passed by it.
Reply By Srikanthan S as =
Some queries are:
Whether
1. the provisions would be applied to different business verticles within an Organizat
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