Skip to main content

Profiteering check now picking up

Profiteering check now picking up
Kerala panel seeks action against 335 merchants
The antiprofiteering mechanism under the goods and services tax (GST) has picked up, with Kerala proposing action against 335 traders for not passing on to consumers a reduction in price under the new set of levies.The screening committee of the state has written to the standing committee at the Centre, providing a list of these merchants and evidence, demanding action.
Uttar Pradesh (UP) and Bihar, among others, say they´ve started with awareness campaigns, price information collection and investigation.“We collected information and found some were collecting GST while not being registered.Some others were additionally collecting value added tax (VAT) from consumers.
Some were charging GST above the MRP (printed Maximum Retail Price).We have demanded strict action against these entities, to discourage others from these malpractices,” said a Kerala official, on condition of anonymity.Kerala´s screening committee collected price information for a little over 600 items in the preGST and post GST periods in all districts, and suspected over charging in 430 items, according to the official.
GST law provides for an antiprofiteering mechanism to ensure the full benefits of a reduction in tax on supply of goods or services go to consumers.The full benefit of input tax credit must be passed, with commensurate reduction in prices, according to the law.UP says it is collecting information on suspected GST evasion and profiteering, including secret surveys and investigation.
“We are collecting data for businesses that are under invoicing transactions.We are also looking at entities that are doing wrong billing by charging GST over MRP. We will soon formulate a strategy against the offenders,” said an official.Most antiprofiteering cases relate to restaurants and non-brands. “Our officers are discreetly carrying out surveys and investigation.
We will take action,” he added.For local complaints, statel evel screening committee looks into it, and passes it to the central standing committee.The latter may refer cases to the Director General of Safeguards for detailed enquiry, which will in turn recommend to the National AntiProfiteering Authority, for action against offenders.
The latter body is empowered to order a reduction in prices, returning the profiteered amount with 18 per cent interest, imposition of penalty or cancellation of registration of a supplier.A Maharashtra official said awareness campaigns by the government had ensured that merchants do not profiteer.
“We have been disseminating information about how to fix prices,” he said.Adding that restaurants were initially found to be not passing on the tax benefit but doing so on being told by the authorities.“No complaint has come yet,” he said. Officials from Bihar said cases were yet to come and the state government was doing publicity campaigns to make consumers aware.
“With these being carried out, we will very shortly see cases coming in,” said the official.Officials in Assam said detailed instructions would be issued to field formations on antiprofiteering and to report on any malpractice.“We will soon start receiving complaints,” one added.The Punjab government says it will go slow on investigation for the next five or six months, till GST stabilises.
“With the antiprofiteering mechanism picking up pace, it is important for businesses to ensure compliance, to avoid trouble,” said Rajat Mohan of chartered accountants AMRG &Associates.
New facility for exporters to claim refunds
The Goods and Services Tax Network (GSTN) on Sunday said it has introduced a utility Table 6A in Form GSTR1 for exporters to claim refunds.
An exporter can claim refund of Integrated GST tax paid at the time of export by filling the details of shipping bill and tax paid GST invoice in his Form GSTR1 in the relevant month.
The shipping bill filed by an exporter with customs authorities is considered to be an application for refund of integrated tax paid on the goods exported out of India.
The Business Standard, New Delhi, 06th November 2017


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