New Delhi : Businesses still back According to official estimates on regulatory action on profiteering related to Goods and Services Tax (GST) by the industry, they have reportedly made a profit of Rs 510 crore from consumers, and they are facing the possibility of refunding a huge amount to the consumers. .
Companies have either returned to individual consumers or deposited in the designated consumer welfare fund 510 crore out of the total amount allegedly profited 1,500 crore, said a private person seeking regulatory action.
By not reducing the price of goods and services after the government reduced tax rates and made more tax credits available to businesses, tax benefits companies have so far allegedly passed on to the consumer in the GST regime. This estimate is based on the cases on which the National Anti-Profiteering Authority (NAA) has so far issued judgment orders in view of the investigation report of the Directorate General of Anti-Profiteering (DGAP). The amount would be higher if adjudication cases pending before the NAA are considered.
Consumers such as home buyers, who could be identified, were allegedly refunded the profiteered amount, while in case of low priced items, where the consumers could not be identified, the amount was deposited in a designated consumer welfare fund. was deposited.
Although the regime is known as ‘anti-profiteering’, it is not intended to come in the way of profit making by the firms. “The anti-profiteering system is not here to stop anyone from making profits. But when the government lowers the tax rate in the public interest or increases the input tax credit available to the industry, that relief should be passed on to the consumers,” the person said.
The anti-profiteering regime is set to face a change soon, with the Center set to notify for inclusion of its regulatory framework within the Competition Commission of India (CCI). The idea is to involve the DGAP, which investigates complaints of profiteering related to GST, in the office of the Director General of Investigation attached to the CCI.
Several petitions challenging the constitutional validity of the anti-profiteering provision in the GST law are now pending before the Delhi High Court.
Abhishek A Rastogi, partner at law firm Khaitan & Co, which is representing businesses in more than a dozen cases, said the arguments would end in two parts. First, the constitutional validity of the provision is to be determined, and only if it is deemed to be valid will a hearing on the quantum of alleged profiteering begin. The Delhi High Court will hear the matter on October 19.
A reply to an email sent to the Finance Ministry spokesperson on Friday seeking comments remained unanswered till it went to press.
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