New Delhi [India], Nov.16 (ANI): The Union Cabinet on Thursday has given its approval for the creation of the posts of chairman and technical members of the National Anti-profiteering Authority (NAA) under GST.
Earlier, from midnight of November 14, the GST rate was slashed from 28 percent to 18 percent on goods falling under 178 categories.
There are now only 50 items which attract the GST rate of 28 percent.
The 'anti-profiteering' measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumers.
This institutional framework comprises the NAA, a standing committee, screening committees in every state and the Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC).
In the event the NAA confirms there is a necessity to apply anti-profiteering measures, it has the authority to order the supplier/business concerned to reduce its prices or return the undue benefit availed by it along with interest to the recipient of the goods or services.
If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund.
Moreover, in extreme cases, the NAA can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST.
The establishment of the NAA which will be headed by a senior officer of the level of secretary to the Government of India with four technical members from the centre and/or the states, is another measure aimed at reassuring consumers that the Government is fully committed to take all possible steps to ensure the benefits of implementation of GST. (ANI)