The anti-profiteering clause of the GST Act allows consumers to file complaints against companies if they do not pass the GST benefits. However, it seems that a generalized Anti-profiteering SOP will replace the long inspection process.
The Council announced anti-profiteering rules 18th June 2016. As per reports, there are already 170 complaints. According to the rules, if traders don’t pass on the benefits, the National Anti-Profiteering Authority (NAPA) can cancel their GST registration.
There are some big names in the list of accused. Currently, there is a three-tiered mechanism. The committee issued notices and launched investigations. But, sispecting, probing and preparing reports for 170 cases is a challenging feat. So, the ministry will come out with a Standard Operating Procedure (Anti-profiteering SOP) to solve this problem.
Currently, this is how the process works:
However, according to reports it may not be practical for Directorate General of safeguards (DGS) to scrutinize this amount of data. The DGS has to submit his reports within the specified three months. The committees will have to study balance sheets, profit and loss accounts, GST Returns, invoice details and prepare the reports. They will also compare price lists before and after GST implementation. As evident, this will be a lengthy and time consuming process.
The Anti-profiteering SOP will shorten the process and defaulters would be penalized as soon as possible.