GST Council may give one-year extension to anti-profiteering authority

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  1. The GST Council is likely to extend the tenure of the National Anti-profiteering Authority(NAA) till November 30,2020.
  2. Besides,the Council will also discuss a proposal to levy Goods and Services Tax(GST) on extra-neutral alcohol (ENA) which is used for manufacturing alcoholic liquor for human consumption.
  3. ENA is a derivative of sugarcane molasses and is not an alcoholic liquor for human consumption but can be used as a raw material or input after processing and substantial dilution in the production of whisky,gin, country liquor.
  4. The NAA has been constituted under Section 171 of the Central GST Act, 2017 to ensure that the reduction in the rate of tax or the benefit of input tax credit is passed on to the recipient by way of commensurate reduction in prices.
  5. Profiteering means unfair profit realized by traders by manipulating prices,tax rate adjustment.In the context of the Goods and services tax (GST),profiteering means that traders are not reducing the prices of the commodities when the GST Council reduces the tax rates of commodities and services.
  6. NAA’s main function is to ensure that traders are not realizing unfair profit by charging high price from the consumers in the name of GST.The responsibility of the NAA is to examine and check such profiteering activities and recommend punitive actions including cancellation of licenses.

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