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

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

New money laundering norms stump jewellery sector

New money laundering norms stump jewellery sector Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect. Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002). The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act. Sources said the government’s move to apply the PMLA to the jewellery sector was a fallout of income-tax raids on jewellers soon after demonetisation last November, when it was found that they sold gold and jewellery at a huge premium and accepted old currency notes as payment. The notification, issued on Augus…

Confusion over branded food GST

Confusion over branded food GST The GST Council's statement over the weekend on applying tax on branded food items has left most of the trade confused.

Even though the Council has not changed the rates on food -0 per cent on unbranded stuff and 5 per cent on brands -many small traders who didn't levy GST earlier said they could come under the 5 per cent slab after the clarification.

While they predicted some increase in consumer prices, large players said they can absorb GST in many ways and keep prices steady.

"Trade is confused and hence on behalf of our chamber, we have asked our members to go ahead and charge 5 per cent GST," said Sushil Sureka, general secretary of the Ahilya Chamber of Commerce and Industry in Indore.

The statement clarifying the application of GST came after some businesses were found deregistering their brands and selling under corporate brand name without paying tax, after the Council exempted unbranded food from the new all-encompassing indirec…