Anti-Profiteering: SOP

The anti-profiteering rules were announced on 18th June 2016 and as per reports, as many as 170 complaints have already been filed.

The anti-profiteering clause of the GST Act allows consumers to file complaints against companies if there is reason to believe that a company is not passing on the GST benefits.

The list of accused includes some big names. Notices have been issued and investigations launched. Obviously, inspecting and probing and preparing reports for 170 cases will be a challenging feat. To combat this problem, the Finance Ministry will come out with a Standard Operating Procedure (SOP).

Currently, this is how the process works:

However, according to reports it may not be feasible for Directorate General of safeguards (DGS) to scrutinize this amount of data and submit its reports within the stipulated three months. The committees will have to study balance sheets, profit and loss accounts, GST Returns, invoice details and price list prior to and after GST implementation. This would undoubtedly be a lengthy and time consuming process.

The SOP will hopefully shorten the process and defaulters would be penalized as soon as possible.

A detailed probe in five cases has begun.