homebusiness Newscompanies NewsAnti profiteering authority to be merged with CCI to ensure consumers get GST rate cut benefits
Anti-profiteering authority to be merged with CCI to ensure consumers get GST rate cut benefits
"All pending cases of anti-profiteering authority post the merger are likely to be taken up by the competition watchdog,” sources told CNBC-TV18.
In a bid to continue the legacy of the National Anti-profiteering Authority and ensure that the benefit of reduced GST rates are timely passed on to consumers, the government is likely to merge the NAA with the Competition Commission of India (CCI) by year end.
“The GST Anti-Profiteering Authority is likely to be subsumed with Competition Commission of India by year end, most likely by November itself,” sources on the condition of anonymity told CNBC-TV18.
"All pending cases of anti-profiteering authority post the merger are likely to be taken up by the competition watchdog,” the sources added.
The NAA was setup to ensure that the GST rate reductions are passed on to consumers. The authority was crafted as a statutory body under the GST law to check unfair profiteering by registered suppliers.
“As of May, there are close to 400 cases pending with the anti-profiteering authority and the authority has been told to wrap up as many cases as possible on an urgent basis,” said the sources.
It is important to note that the proposal to merge the authority with the competition watchdog was earlier considered by the GST council. The council had requested CCI to study the proposal.
Also, the merger can only happen once the proposal is considered a fresh by the GST council and given an approval.
The merger plans could also ease litigation burden for the central government as the constitutionality of NAA is already under challenge across several state High Courts.
The GST Anti-profiteering Authority had issued orders of profiteering against some major corporates including HUL, Jubilant FoodWorks, McDonald's, Starbucks, DLF, etc.
The authority made headlines when, in 2018, it issued orders establishing GST benefits of Rs 535 crore were not passed on by HUL to consumers. However, HUL has challenged the NAA order.
First Published: May 31, 2022 5:20 PM IST
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