Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

OPERATION OF ANTI PROFITEERING CLAUSE IN GST

Goods and Services Tax - GST - By: - Dr. Sanjiv Agarwal - Dated:- 15-12-2017 - The provisions on anti-profiteering are contained in the GST law as per following provisions: CGST Act, 2017 Section 171 on Anti-profiteering measures. IGST Act, 2017 Section 20 which stipulate that provisions of the GST Act, 2017 shall apply mutatis mutandis to IGST Act UTGST Act, 2017 Section 21 which stipulate that provisions of GST Act, 2017 shall apply mutatis mutandis to UTGST Act, SGST Act, 2017 Section 171 on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 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. As per rule 127, Anti-Profiteering Authority (APA) shall be duty bound to: determine whether any reduction in rate of tax on any supply of goods or services or the benefit of the input tax credit has been passed on to the recipient by way of commensurate reduction in prices. identify the registered person who has not passed on the benefit of reducti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt to reduction in rate of tax or allowance of input tax credit. There has been considerable delay in constitution of anti-profiteering authority which took almost five months since GST was introduced and consumers had to face the brunt of inflation and undue profiteering. Now that GST Council has substantially lowered the tax rates on host of items, if the Authority plays its role well, it can be hoped that desirable benefits may accrue to consumers. During the two years of initial transition i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. If this is not done, the consumer's interest is protected by the National Anti-profiteering Authority which may order: (a) reduction in prices; (b) return of the amount not passed on with interest @ 18% to the recipient; (c) imposition of penalty; and (d) cancellation of registration of the supplier. Affected consumers may file an application, in the prescribed format, before the Standing Committee on Anti-profiteering if the profiteering has all-India character or before the State Screen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

comparison thereof will show the benefit passed on due to lower tax cascading. Based on the CBEC advisory, it is understood that major FMCG companies have taken positive steps to reduce the prices of goods resulting from cut in tax rates. This is reflected in the recent rate cut announcements in media by companies which has been possible with the use of technology to monitor billing / invoicing at retail level. Similarly, restaurants are also expected to pass on the benefit because of lower tax .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sector enterprises or banks or large listed companies, there could even be mechanism of getting verification done by any external agency / internal auditor etc. Alternatively, such vendors or suppliers could be asked to tender a Chartered Accountant / Cost Accountant certificate to this effect. CBEC may also conduct test audits in this regard. Undue or excessive (more than normal or reasonable profit) is bad, both from ethical as well as legal angle. Further, it is inflationary and does not help .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ading. It we look at other economies where GST was introduced earlier, the consumer price inflation witnessed a download trend. For example, in New Zealand (introduced in 1991), Singapore (introduced in 1994) and Malaysia (introduced in 2016). However, in Australia, where it was introduced in 2000, there has been a mixed trend with ups and downs. So far as India is concerned, the main reasons behind inflationary trend are complexities in GST law for anti tax cascading effect, lack of knowledge a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version