National Anti-Profiteering Authority

May 17, 2018

 

Composition:

  1. One Chairman:

    • Officer of the level of Secretary to the Government of India.

  2. Four Technical Officers:

    • From the centre or states.

 Aim:

  1. 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.

Institutional Framework:

  1. National Anti-Profiteering Authority, 

  2. A Standing Committee, 

  3. Screening Committees in every State and the 

  4. Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC). 

Working:

  1. 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.

  2. 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.

  3. 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 NAA. 

 Powers of NAA:

 

  1. In the event the NAA confirms there is a necessity to apply anti-profiteering measures, it has the authority to order the supplier / business concerned to reduce its prices or return the undue benefit availed by it along with interest to the recipient of the goods or services.

  2. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund.

  3. In extreme cases, the NAA can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST. 

     

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