The Government has allowed consumers to file complaints against any irrational profit made by businesses by not passing on cost reduction benefit to buyers in lieu of anti – profiteering mechanism under GST.

Reportedly said by Revenue Secretary Hasmukh Adhia, the government has notified the ‘standing committee’ comprising four officers — two each from the Centre and states for receiving complaints on profiteering. Besides, states are in the process of notifying the state level ‘screening committees’, which will also include central government nominees. “If you have got any complaints you can send it to the standing committee or state level screening committee,” Adhia said at a GST roundtable organized by the Business Standard newspaper.

It is said that the complaints of local nature would be first sent to the state-level ‘screening committee’, while those of national level would be sent to the ‘Standing Committee’. Complaints with merit shall be referred by the respective committees for further investigation to the Directorate General of Safeguards.

Adhia said the DG Safeguards would generally take 2-3 months to complete the investigation and send the report to the anti-profiteering authority. Although members of the anti-profiteering authority, to be headed by a Secretary level officer with four Joint Secretary level officers as members, is yet to be finalised, by the time the investigation on the complaints is complete, the authority would be in place, he added.

If it is found by the anti – profiteering unit that a company has not passed the GST benefits will either direct it to pass on the benefits to consumers or if the beneficiary cannot be identified, will ask the firm to transfer the amount to a ‘consumer welfare fund’ within a specified timeline. The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator. The authority can also suggest the return of the undue profits made from the non-passed of the reduction in incidence of tax to consumers along with 18 per cent interest, as also impose a penalty. A five-member committee headed by Cabinet Secretary P K Sinha, comprising Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states, would finalise the Chairman and members of the authority, which would have a term of two years.

Sources –Business Standard

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