ANTI PROFITEERING IN GST

ANTI PROFITEERING IN GST

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“Profit is fine, but undue profiteering at the expense of common man is not”. In order to ensure that prices remain under check and to ensure that businesses do not pocket all the gains from GST, concept of Anti Profiteering was introduced.

Why Anti Profiteering?

  • To ensure consumer is protected from arbitrary price increase in the name of GST.
  • Benefit in the form of reduced rate of tax of goods or services or both or benefit of input tax credit is passed on to the consumer in the form of reduced prices.

Till date, 32 screening committees have been set up, 29 in states and 3 in Union Territories.

Penalty for violations

Penalty for such violations is Rs. 10,000 or the amount of tax evaded whichever is higher.

Order of Authority

Authority shall within a period of 3 months from date of receipt of the report from the Director General of Safeguards shall pass the order –

  • Reduction in prices
  • return to the recipient, an amount equal to the amount not passed by way of reduction in prices along with interest
  • imposition of penalty
  • Cancellation of registration

Recent developments

National Anti profiteering Authority has started a helpline (Helpline Number 011-21400643) for consumers to register their complaints, provide information or resolve any doubts relating to profiteering. Consumers can also file their complaints on National Anti Profiteering Authority website. This can be done by enclosing evidence such as copy of invoice or price list to prove that benefit was not passed upon.

Recent Case

The Directorate General of Anti Profiteering (DG-AP) has alleged that Hindustan Unilever (HUL) has profiteered Rs 495 crore by failing to pass on the benefit of reduced GST to the consumers. DG-AP has been investigating the charges against HUL since January and has submitted the final report to National Anti – profiteering Authority (NAA) asserting the charges. The final order is still awaited.


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