This Tax Alert summarizes recent Notifications[1] issued by the Central Board of Indirect Taxes and Customs (CBIC). The said notifications are effective from 1 December 2022.
Earlier, National Anti-Profiteering Authority (NAA) was set up to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services supplied by him.
Goods and Services Tax (GST) Council, in its 45th Meeting held on 17 September 2021 extended the tenure of NAA by one year, i.e., till 30 November 2022.
Section 171(2) of the Central Goods and Services Tax Act, 2017 (CGST Act) empowers Central Government to notify an existing authority constituted under any law for the time being in force to examine anti-profiteering cases.
Accordingly, Central Government has now notified the Competition Commission of India (CCI), established under Competition Act, 2002 as the authority to deal with anti-profiteering cases.
Corresponding changes have been made in Central Goods and Services Tax Rules, 2017 (CGST Rules). Further, the provision prescribing tenure of NAA as 5 years has also been removed.
Comments:
Empowering CCI to examine cases for adherence of anti-profiteering provisions is likely to bring in more transparency in the proceedings, considering its expertise in handling consumer interest related matters and the proper litigation mechanism.
Clarity may be required w.r.t cases pending before NAA, particularly, where investigations have been completed but the orders are yet to be passed.
Appropriate guidelines from the Government relating to determination of the quantum of profiteering will enable CCI to handle such cases more efficiently.
