The Union Cabinet on Thursday approved the establishment of the National Anti-profiteering Authority (NAA) under the GST to ensure that the benefits of reduction in GST rates on goods and services are passed on to the ultimate consumers by way of reduction in prices.
“The Cabinet chaired by Prime Minister Narendra Modi has given its approval for the creation of the posts of chairman and technical members of the NAA under GST, following up immediately on Wednesday’s sharp reduction in the GST rates of a large number of items of mass consumption. This paves the way for the immediate establishment of this apex body, which is mandated to ensure that the benefits of the reduction in GST rates on goods and services are passed on to the ultimate consumers by way of a reduction in prices,” an official statement said after the meeting.
The establishment of the NAA, to be headed by a senior officer of the level of secretary with four technical members from the Centre and/or the states, is another measure aimed at reassuring consumers that the government is fully committed to take all possible steps to ensure the benefits of implementation of the GST in terms of lower prices of the goods and services reaching them.
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 supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a standing committee, screening committees in every state and the Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC).
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.
However, in case, the incident of profiteering relates to an item of mass impact with pan-India ramifications, the application may be directly made to the standing committee.(DH)