Comprehending CGST Standards: Chapter 15 – Anti-Profiteering in Focus

In the realm of CGST rules, Chapter 15 delves into the crucial aspect of Anti-Profiteering, ensuring fair practices in the passing on of benefits to consumers. Here’s a detailed exploration:

Constitution of the Authority:

The Authority is constituted with a Chairman, typically holding a position equivalent to a Secretary to the Government of India, and four Technical Members, who are former Commissioners of State tax or central tax, nominated by the Council.

Constitution of the Standing Committee and Screening Committees:

A Standing Committee on Anti-profiteering, composed of nominated officers from State and Central Governments, may be formed by the Council. Additionally, State-level Screening Committees, comprising officers from both State and Central Governments, are established by State Governments.

Appointment, Salary, and Terms of Service:

Members of the Authority are appointed by the Central Government based on recommendations from a Selection Committee. The Chairman receives a fixed monthly salary along with allowances, while Technical Members also receive fixed salaries and entitled allowances.

Duties of the Authority:

The Authority holds the responsibility to determine if the reduction in tax rates or input tax credit benefits have been passed on to consumers through price reductions. It also identifies non-compliant registered persons and takes necessary actions such as price reduction orders, penalty imposition, or registration cancellations.

Initiation and Conduct of Proceedings:

Upon receiving applications or evidence, the Standing Committee examines the prima facie evidence. Investigations are then conducted by the Director General of Safeguards to determine if benefits have been appropriately passed on.

Order of the Authority:

After thorough investigation, the Authority decides on whether the benefit has been passed on and issues appropriate orders, including price reductions, penalty imposition, or registration cancellations, if necessary.

Compliance and Monitoring:

Registered persons must comply with the Authority’s orders promptly, or face recovery actions as per relevant tax laws. Additionally, the Authority may task tax authorities with monitoring order implementations.

Tenure of Authority:

The Authority operates for a designated period, typically two years, unless otherwise recommended by the Council.

Understanding these CGST rules ensures transparency and fairness in the market, ultimately benefiting consumers and promoting equitable business practices.