GST: Centre appoints nodal officer to check profiteering

CHANDIGARH:The Government of India has appointed the Chief Commissioner of Centre Goods and Service Tax (CGST) as the nodal officer to receive complaints of undue profiteering by any entity under the new goods and services tax (GST) regime for Chandigarh.

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, November 28

The Government of India has appointed the Chief Commissioner of Centre Goods and Service Tax (CGST) as the nodal officer to receive complaints of undue profiteering by any entity under the new goods and services tax (GST) regime for Chandigarh.

Sources said the Ministry of Finance had conveyed the appointment to the Administration. The Administration has recently sent the draft proposal for the establishment of standing anti-profiteering committees for UT.

An officer of the department said the appointment of the nodal officer sets in motion the anti-profiteering clause under the GST.

The anti-profiteering mechanism has been proposed to enable the benefit of lower taxation in the GST passed on to consumers.

The anti-profiteering authority, if it finds that a company or trader has not passed on the GST benefits, will either direct the firm to pass on benefits to consumers or if the beneficiary cannot be identified will ask the firm to transfer the amount to a ‘consumer welfare fund’ within a specified timeline.

The authority will have the power to cancel the registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime.

The authority can suggest return of undue profit earned from not passing on the reduction in incidence of tax to consumers along with 18 per cent interest and also impose a penalty. If the complaints have merit, then the nodal officer would refer the cases for further investigation to the Directorate General of Safeguards (DGS).

The DG Safeguards would complete the investigation and send the report to the anti-profiteering authority.

Sources said the committee under GST rules will also be formed soon. The GST was rolled out from July 1 and the government has advised businesses to pass on the benefit of any cost reduction to buyers.

Ajay Jagga, Advocate, Member, Consumer Protection Council, said the announcement of an authority under the mechanism of anti-profiteering under GST laws at Chandigarh will bring the much needed relief as consumers can file their grievance. The ultimate aim is to ensure that there should not be any unjust enrichment by supplier in the name of GST and the reduction of tax liability should pass on to the consumers.