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GST (Tax) Anti-Profiteering Complaints Will Be Handled By A Competition Body Beginning December 1

All Goods and Services Tax (GST) anti-profiteering complaints will be handled by the Competition Commission of India (CCI) from December 1, as the National Anti-profiteering Authority’s extended mandate ends this month, an official said on Tuesday.
The finance ministry is anticipated to release a notification in this respect later this month, according to the official.

The National Anti-profiteering Authority (NAA) was established in November 2017 under Section 171A of the Goods and Services Tax (GST) law to monitor registered suppliers’ unfair profiteering practices.

The Authority’s primary duty is to guarantee that the advantages of lower GST rates on products and services, as well as the input tax credit, are passed on to consumers in the form of lower pricing.

It was initially set up for two years till 2019 but was then extended to November 2021.

At its 45th meeting in September of last year, the GST Council granted NAA another one-year extension until November 30, 2022, and also resolved to delegate the task to CCI after that.

According to the Council’s resolution, NAA will cease to operate on December 1. All investigations based on consumer complaints will now be conducted by the Directorate General of Anti-profiteering (DGAP), which will thereafter submit a report to CCI.

According to the person, CCI would likely establish a distinct branch to address GST profiteering accusations.

The GST law established a three-tier framework for investigating and adjudicating profiteering concerns.

The complaints must first be referred to state-level screening and standing committees before being forwarded to DGAP for inquiry.

The investigative report is subsequently forwarded to the NAA. After hearing both sides, the authority issues an order. If the NAA discovers that a provider has profiteered, the profiteered money, plus 18% interest, must be returned to the customer.

If all of the customers are unable to be identified, the money is transferred to the consumer welfare fund.

CCI was founded under the Competition Act of 2002 to enforce the legislation. It is made up of a chairperson and six members are chosen by the central government.

The Commission is in charge of eradicating anti-competitive activities, defending consumer interests, and maintaining free trade.

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