Starting next month, the Competition Commission of India (CCI) will consider anti-profiteering measures under the Goods and Services Tax (GST). Which will replace the National Anti-Profiteering Authority (NAA). According to experts, the CCIA will have to work on the challenge of finding the right mechanism to measure profiteering and fines. Earlier, an appeal could be made against the NAA in the court. The Central Board of Indirect Taxes and Customs (CBIC) issued a notification in this regard on Wednesday.
Apart from deleting and adding rules, the notification states that the central government, based on the recommendations of the Goods and Services Tax Council to the Competition Commission of India, after availing input tax credit or reduction in GST tax rate by a registered person , the actual reduction in the price of the goods or services or both supplied by him has entitled him to verify whether the same has happened or not. The decision has been taken at a time when around 50 cases are being heard against the constitutional validity of the NAA. Presently all those cases are being clubbed and hearing is going on in Delhi High Court. The biggest problem is the lack of a methodology for calculating profitability.
According to Abhishek Rastogi, founder of Rastogi Chambers, this is an expected move based on the recommendations of various states. However, it will be interesting to see whether the CCI can provide a mechanism to measure profiteering for different sectors. According to another expert, it remains to be seen what methodology the CCI follows to calculate the profit.