Govt all set to introduce Anti-Profiteering Act; What next for vendors not complying with GST exemption?

THIRUVANANTHAPURAM: The central government adopted strict action against those who have not reduced the prices of daily necessities even after a month of the GST exemption. Traders will be fined. Manufacturers will also be denied input tax. For this, the Anti-Profiteering Act will be implemented again.

Although it was implemented in 2017, industrialists intensified their opposition, which saw the government take it back in 2022. An expert committee has been appointed to suggest how it should be implemented again.

First, a warning. If the offence is repeated, severe fines will be imposed and the license cancelled. The decision will be taken only after the committee report is discussed by the GST Council. Non-BJP governments, including Kerala, Bengal, and Tamil Nadu, have demanded the implementation of the Anti-Profiteering Act.

1. Anti-profiteering is under Section 171 of the GST Act. Those who make unfair profits by not showing the tax deduction in the price will be booked.

2. For this, a squad comprising the police, the intelligence wing, the competition commission, the anti-profiteering authority and the GST Appellate Tribunal will be involved.

• Tax exemption on 175 products and insurance services, from chutney to cars, came into effect on September 22.

• However, the central government found in a market survey that the people are not getting a price reduction on most items.

• Only the automobile and electronics sectors are getting price reductions commensurate with the tax reduction.

• It is expected that the prices will be reduced by November. After that, action will be taken as per the central instructions.