Anti profiteering

Q.1: What is ‘profiteering’?

Ans. 1: Profiteering means “to make or seek to make an excessive or unfair profit, especially illegally”. As per the Sec. 171 of CGST / SGST, 2017, the suppliers of Goods or Services should pass on the benefit of any reduction in the rate of GST on such supplies or the benefit of Input Tax Credit (ITC) to the recipient by way of commensurate reduction in prices. Any willful action of not passing of such benefit to the recipient of supplies under GST law, amounts to “profiteering”.

Q.2: What are the legal provisions governing the Anti-profiteering?

Ans. 2: The Sec. 171 of CGST/SGST Act, 2017 and the Rule 122 to Rule 137 of the CGST/SGST Rules, 2017 envisages the relevant legal provisions, including the administrative and procedural aspects of the Anti-profiteering.

Q.3. What is the administrative structure for enforcing the provisions of Anti-Profiteering (AP)?

Ans. 3: CGST/SGST Act, 2017 mandates a 3-tier structure for the scrutiny, investigation and adjudication of the complaints regarding profiteering. They are:

(1) The National Anti-profiteering Authority (NAA) – is the Apex body, at the National level – undertakes adjudication of the cases of AP;

(2) The Directorate General of Anti-profiteering (DGAP), earlier known as DG-Safeguards, investigates the complaints referred to by the Standing Committee; and

(3) The Standing Committee (SC) at the National level, supported by the State Screening Committees (SSC) constituted at each State – scrutinises the applications received.

Read more at...   1. anti-profiteering-rules-gst

2.  anti-profiteering-authorities-gst