Lok Sabha Question No. 1282 (UNSTARRED), answered on 2018-02-09
Subject: Role of NAA under GST
Ministry: FINANCE
Asked by: MIDHUN REDDY, ANURAG SINGH THAKUR, JAYADEV GALLA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION No.1282 TO BE ANSWERED ON FRIDAY, FEBRUARY 09, 2018 MAGHA 20, 1939 (SAKA)

## ROLE OF NAA UNDER GST

1282. SHRI P.V. MIDHUNREDDY:

SHRI ANURAG SINGHTHAKUR:

## SHRI JAYADEV GALLA:

Will the Minister of FINANCE be pleased to state:

- (a) the details of  aims  and  objectives  of the  National  Anti-profiteering Authority (NAA) and the time by which the NAA will start functioning ;
- (b)  whether  the  NAA  mandated  to  investigate  the  broad  market  abuse  of power to tweak prices and if so, the details thereof ;
- (c)  whether  the  Government  is  faced  with  increasing  number  of  complaints under anti-profiteering rules and if so, the details thereof ;
- (d)  whether  the  benefit  of  tax  rate  reduction  has  not  been  passed  on  to consumers since  the  roll  out  of  Goods  and  Services  Tax  (GST)  and  if  so,  the details thereof ;
- (e) the details of mechanism under NAA to implement the GST benefitspassed on to consumers; and
- (f) whether the NAA has cancelled registration of any entity or business which fails to pass on GST benefits to consumer and if so, the details thereof.

## MINISTER OF STATE FOR FINANCE

## (SHRI SHIV PRATAP SHUKLA)

- (a) The National Anti-profiteering Authority has been functioning since 01.12.2017.  The  aims  and  objectives  of  the  National  Anti-profiteering Authority are as under:

(i) to determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices; (ii)  to identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input  tax  credit  to  the  recipient  by  way  of  commensurate  reduction  in prices; and (iii) to order, (a)  reduction in prices; (b)  return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen percent from the date of collection of the higher amount till  the  date  of  the  return  of  such  amountor  recovery  of  the  amount  not returned,  as  the  case  may  be,  in  case  the  eligible  person  does  not  claim return of the amount or is not identifiable, and depositing the same in the Consumer Welfare Fund referred to in section 57 of the CGST Act, 2017; (c) imposition of penalty as specified in the CGST Act, 2017; and (d) cancellation of registration under the CGST Act, 2017. (iv) To furnish a performance report to the Council by the tenth of the close

- of each quarter.
- (b) The  National  Anti-profiteering  Authority  is  not  mandated  to  investigate cases  of  profiteering  under  GST.  Such  investigation  is  conducted  by  the Directorate  General  of  Safeguards  under  the  Central  Board  of  Excise  and Customs.
- (c) & (d)  221 applications have been received as on 31.01.2018 alleging the benefit has not been passed on. Notices of initiation of investigation have been issued in respect of 9 cases involving 52 applications.
- (e) On  receipt  of  the  investigation  report  from  the  Director  General  of Safeguards  confirming  profiteering,  National  Anti-profiteering  Authority may order reduction in price and return of amount to the recipient with interest. It may also impose penalty on the person who has not passed on the benefit and cancel his registration.
- (f) No Sir.

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