Lok Sabha Question No. 163 (UNSTARRED), answered on 2017-12-15
Subject: National Anti-profiteering Authority
Ministry: FINANCE
Asked by: B. SREERAMULU, CH. MALLA REDDY, Tejpratap Singh,Yadav, RAMDAS CHANDRABHANJI TADAS, OM BIRLA, ANJU BALA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA UNSTARRED QUESTION No.163 TO BE ANSWERED ON FRIDAY, THE 15 th  DECEMBER, 2017 AGRAHAYANA 24, 1939 (SAKA)

## NATIONAL ANTI-PROFITEERING AUTHORITY

163. SHRI B. SRIRAMULU: SHRI CH. MALLA REDDY: SHRI TEJ PRATAP SINGH YADAV: SHRI RAMDAS C. TADAS: SHRI OM BIRLA: SHRIMATI ANJU BALA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has made any assessment of implementation of the Goods and Services Tax (GST) in the country and if so, the present status of
- implementation;
- (b)  whether  several  problems  have  been  found  by  various  stakeholders  and accordingly several changes have been made in the deliberations in the GST council meetings;
- (c) if so, the details thereof and the remedial steps/action taken thereon;
- (d) whether the Government plans to establish the National Anti-profiteering Authority  (NAA)  under  the  GST  to  ensure  that  the  full  benefits  of  input  tax credits and reduced GST rates are passed on to the consumers;
- (e)  if  so,  the  details  of  aims,  objectives  and  the  salient  features  of  the  NAA under GST along with its constitution, duration of their tenure, time period for which  the  NAA  has  been  established  and  the  framework/mechanism  to achieve its aims and objectives; and
- (f)  whether the Government proposes to set up any investigation Committee also regarding distribution of benefits of GST between the customer and the shopkeeper  and  if  so,  the  details  thereof?  whether  the  Government  has reviewed the anomalies reported in the Goods and Services Tax (GST) and if so, the details thereof;

## MINISTER OF STATE FOR FINANCE

(SHRI SHIV PRATAP SHUKLA)

- (a) Yes Sir. The implementation of GST has been smooth so far.
- (b) Certain representations have been received by stake holders. Accordingly, some  changes  have  been  recommended  by  the  GST  Council  which  have been implemented by the Central Government.
- (c) The  GST  Council  in  its  22nd  GST  Council  Meeting  made  the  following recommendations:
- I. to increase the aggregate annual turnover threshold for eligibility under the composition scheme from Rs. 75 lakh to Rs. one crore for 27 States (including Jammu & Kashmir and Uttarakhand).
- II. to increase the aggregate annual turnover threshold for eligibility under the Composition scheme from Rs. 50 lakh to Rs. 75 lakh for Special Category States (as specified in sub-clause (g) of clause (4) of article 279A of the Constitution) other than Jammu & Kashmir and Uttarakhand.
- III. Taxpayers  having  annual  turnover  of  up  to  Rs.1.5  crore  in  the previous  year  to  file  quarterly  Returns  and  taxpayers  having annual turnover above Rs.1.5 crore to file monthly returns.
- IV. registered  persons  having  aggregate  turnover  less  than  Rs  1.5 crores to make payment of tax on issuance of invoice and not at the time when advances are received.
- V. to  suspend  the  application  of  reverse  charge  mechanism  under Section 9(4) of the CGST/SGST Acts, 2017 and Section 5(4) of the IGST Act, 2017 till 31 March, 2018 for all categories of registered persons including Composition taxpayers and during this period, the scheme shall be reviewed by the new Law Review Committee constituted to review the changes required in the law.

Further, the GST Council in its 23rd Meeting held on 10th November, 2017 discussed the report submitted by the Group of Ministers and recommended following decisions were taken:

- (i) Uniform rate of tax @1% under composition scheme for manufacturers and traders. The turnover for traders will be counted only for supply of taxable goods. No change in composition scheme for restaurants sector.
- (ii) Supply  of  services  by  Composition  taxpayer  upto  Rs.  5  lakh  per annum will be allowed by exempting the same.
- (iii) Annual turnover eligibility for composition scheme will be increased to Rs. 2 crore from the present limit of Rupees One crore

under the law. Thereafter, eligibility for composition will be increased to  Rs.  1.5  crore  per  annum.  This  will  be  done  after  necessary amendments in the GST laws. (iv) The amount of late fee payable by a taxpayer whose tax liability for the month was 'Nil' will be Rs.20/- per day (Rs.10/- per day each under CGST & SGST Acts) subject to maximum Rs.5000/- each under Act from October, 2017. (v) The amount of late fee payable by other taxpayers will be Rs. 50/- per day  (Rs.  25/-  per  day  each  under  CGST  &  SGST  Acts)  subject  to maximum Rs.5000/- each under Act from October, 2017. (d) Yes Sir. It has been established. (e) The  aims  and  objectives  of  the  National  Anti-Profiteering  Authority  are specified in section 171 of the CGST Act, 2017 read with rules 127 to 137 of the CGST Rules, 2017.

- (f) No Sir. No such proposal is presently under consideration.

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