Skip to main content

Cabinet clears setting up of GST anti profiteering body

By
Cabinet clears setting up of GST anti profiteering body
The Cabinet on Thursday set the ball rolling for establishment ofanational antiprofiteering authority amid reports that restaurants were not passing on the benefits of reduced goods and services tax (GST) rates to consumers.
The Cabinet cleared the creation of the posts of chairman and members of the authority, which will ensure consumers receive the benefits of reduced prices in the new indirect tax regime.
“This paves the way for immediate establishment of this apex body,” said Union law minister Ravi Shankar Prasad.
“The National AntiProfiteering Authority is an assurance to consumers.
If any consumer feels the benefit of tax rate cuts is not being passed on, he can complain to the authority,” the minister added.
The GST Council had last week decided to lower rates on about 200 items.
It had also reduced the rate on restaurants to five per cent.
There have been complaints that some restaurants are not passing on the benefits because input tax credit is not available to them now.
The Council had earlier approved the setting up ofafivemember authority for consumers to file complaints if price reductions were not passed on.Afivemember panel headed by Cabinet SecretaryPKSinha and comprising Revenue Secretary Hasmukh Adhia, CBEC Chairman Vanaja Sarna and chief secretaries from two states has been entrusted with the task of selecting the chairman and members of the authority.
“It is now expected that the government will soon notify the methodology to be used to determine whether profiteering has occurred,” said MS Mani, senior director -indirect tax, Deloitte.
“We are hopeful the body will take constructive measures, so that there is no return of the dreaded ´inspector raj´,”said Archit Gupta, chief executive officer, ClearTax.
The authority will haveasunset date of two years from the date the chairman assumes charge.
Complaints of a local nature will be sent to a state level screening committee.
Those at the national level will be marked toastanding committee.
These committees will refer cases for investigation to the Directorate General of Safeguards, which will send its report to the authority.
If the authority finds a company has not passed on GST benefits, it will either direct the company to refund consumers or transfer the amount toaconsumer welfare fund.
The authority can ask for returning undue profits to consumers along with 18 per cent interest.
It can also impose a penalty.
The authority will have the power to cancel GST registration of any business, but that will be the final step against any violator.
The Business Standard, New Delhi, 17th November 2017

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more