Skip to main content

Anti profiteering authority to be ready in a fortnight, says CBEC chief

Anti profiteering authority to be ready in a fortnight, says CBEC chief
The proposed anti-profiteering authority, which will monitor pricing behaviour of businesses under GST, will be up in a fortnight, says CBEC chief Vanaja N. Sarna Businesses will shortly have a new regulator taking a penetrating gaze over their affairs.
The proposed anti-profiteering authority that will monitor pricing behaviour of businesses will be up and running in a fortnight, said Central Board of Excise and Customs (CBEC) chairperson Vanaja N. Sarna‎.
A selection panel led by Cabinet secretary P.K. Sinha has asked states to suggest candidates for the five-member authority, including the chairperson, while the Union government has sent a list of its nominees to states for state-level screening panels that are part of the authority’s ecosystem, said the CBEC chairperson. 
State-level panels will watch out for instances of businesses not passing on benefits of tax reduction to consumers in the goods and services tax (GST) regime.
During the two-year transition into the GST regime that started in July, the National Anti-profiteering Authority will step in and ask businesses that have not passed on full benefits of a reduced tax burden to consumers to make up for it with interest.
In rare cases, a profiteering business could lose its GST registration too.
“We are expecting nominations (to the Authority) from states in another two weeks. As soon as all these names come in, the Authority will be ready,” said Sarna.
The Authority will be assisted by a four-member standing committee with two state officials. For this, the Union government prefers tax officials from states which are closer to the capital such as Haryana, to be able to hold quick meetings. 
GST’s impact on prices is top on the minds of Union and state policy makers keen to demonstrate that the indirect tax reform benefits the ultimate consumer. That involves not just ensuring that benefits are passed on to consumers, but also convincing them that the higher tax rates they may see on invoices in many cases in the transparent GST regime do not mean that tax burden has gone up. Consumers were not aware of the real burden of embedded taxes on products and services in the earlier regime. 
“Your invoice today specifies central GST, state GST and the cess where applicable. In the earlier regime, consumers could only see the standard rate of value added tax (VAT) of 14.5%, not the central excise duty levied at factory gates of 12.5%, which together led to an actual 27% tax burden. Today the same commodity may be at 18% GST. In the case of cosmetics taxed at 28% GST rate, the increase is only of one percentage point,” explained the CBEC chairperson. 
Industry associations, NGOs and small traders have been making representations to the GST Council for rate revisions on items like sanitary napkins, mixtures (of nuts and other edible items) and some tractor parts. At its 5 August meeting, the GST Council led by finance minister Arun Jaitley brought down tax rates on work outsourced by the labour intensive textile sector and on tractor parts. However, as the new tax system settles down, more rate revisions are unlikely except in cases where there is an unintentional impact on tax burden such as on tobacco.
Sarna said that rolling out GST is also likely to stimulate the direct tax receipts of the government. “Many more assessees are coming into the GST fold, including from the unorganized sector. Earlier, the central excise duty exemption limit was Rs1.5 crore, while the exemption limit for GST is Rs20 lakh annual sales. Also, those who want to claim input tax credit will take GST registration. New GST registrations will favourably impact direct taxes as well,” said she. 
On 4 August, Jaitley said that 7.2 million of the 8 million registered indirect tax assesses under the old regime have registered for GST, in addition to 1.3 million new dealers who have sought GST registration.
The Hindustan Times, New Delhi, 23th August 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit