Previous Year Question
To ensure that the benefits of GST are passed on to consumers, the Government established the National Anti-Profiteering Authority. However, from 1 December 2022, which organisation was entrusted with dealing with GST anti-profiteering complaints?
Correct Answer: C
Detailed Solution
From 1 December 2022, the responsibility for handling GST-related anti-profiteering cases was entrusted to the Competition Commission of India (CCI). CBIC's official Notification No. 23/2022-Central Tax, dated 23 November 2022, authorised the CCI to handle anti-profiteering cases under the CGST Act, and this arrangement became effective from 1 December 2022.
Before this, the function was performed by the National Anti-Profiteering Authority (NAA). According to the official records of the GST Council, the tenure of the NAA ended on 30 November 2022, and its anti-profiteering mandate was transferred to the CCI from the following day. GST Council records also explicitly state that from 1 December 2022, GST anti-profiteering complaints began to be dealt with by the CCI.
The basic purpose of the anti-profiteering mechanism is linked to Section 171 of the CGST Act, 2017. It requires that when there is a reduction in the GST rate or a benefit from Input Tax Credit, the commensurate benefit must be passed on to consumers through a reduction in prices. The mechanism was intended to prevent suppliers from retaining the benefit of tax reduction or input-tax credit as undue additional profit.
NAA → up to 30 November 2022; CCI → anti-profiteering
mandate from 1 December 2022.