Personal Finance

CBIC Replaces NAA with Competition Commission

The Central Board of Indirect Taxes and Customs (CBIC) notified the Competition Commission of India (CCI) as the authority for deciding on the anti-profiteering issues amid National Anti-profiteering Authority (NAA) term cease to exist w.e.f from 1st December 2022.

CBIC notification stated that the Central Government (on the recommendations of the Council) empowered CCI to examine whether Input Tax Credits (ITC) availed by any registered person or the reduction in the tax rate has resulted in a proportionate reduction in the price of the goods or services or both supplied.

CGST Act states that any reduction in the tax rate or the benefit of an ITC shall be passed on to the recipient through a proportionate price reduction.

Presently, anti-profiteering issues are dealt with by the National Anti-Profiteering Authority (NAA) and investigated by the Director General of Anti-Profiteering (DGAP).

Even though NAA will cease to exist from 1st December, the DGAP, the investigation wing of the profiteering watchdog, will retain its investigative powers under GST laws.

Henceforth, all reports by DGAP will be submitted to CCI for its decisions. However, transferring pending cases from NAA to CCI and forming a special bench for adjudication might take some time, considering the pendency of cases.

On the other side, businesses are worried that it will be difficult to comply with the rules and regulations without any industry-specific guidelines regarding the extent of price cuts.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

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