The Competition Commission of India (CCI) plans to take strong action against the companies profiteering by holding the Goods and Services Tax (GST). Sources say that once the CCI is fully operational, notices will be issued against businesses that allegedly profited by deducting consumers’ GST benefits.
Further, notices on profiteering will begin to be issued once at least one new member or chairperson has been appointed. This move will give CCI the necessary quorum of three members to decide cases. The government is appointing a new chairperson for CCI and three other members.
The Directorate General of Anti-Profiteering (DGAP), the authority looking into GST-related profiteering, has finished more than 100 investigation reports on corporate profiteering. However, final instructions from CCI are still pending.
The anticipated notices are issued for allegedly not passing the benefits of the tax credits to the customers. According to sources, most cases involve alleged profiteering by FMCG, cement, and real estate companies.
Currently, CCI present quorum is only present with two members. Hence, the government recently permitted CCI to approve mergers and acquisitions with its current strength. This decision has been taken to prevent corporate deals. However, this concession does not apply to cases involving profiteering or anti-competitive practices.
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DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.