In a bid to ensure credible transfer of GST benefits to the consumers, the Union Cabinet has approved the setting up of National Anti-Profiteering Authority (NAA).
The body will ensure the customers in receiving the benefit of lower taxes under the new indirect tax regime.
The decision came a day after the decision to deduct the products under the Goods and Services Tax (GST) came into force.
Following up immediately on November 15 “sharp reduction in the GST rates of a large number of items of mass consumption”, said the government.
The five-member anti-profiteering authority will have authority to check and return the undue profit earned through overcharging the customers along with 18 per cent interest, reduce prices and if the consumer is not identifiable, deposit the amount in a Consumer Welfare Fund.
In severe cases of abuse, NAA can impose a penalty and even cancel GST registration of the entity involved in the corruption.
The body is expected to be set up soon. There have been reports that many restaurants have not passed on the rate cut.
