National Anti-Profiteering Authority (NAA)

In News

• National Anti-Profiteering Authority expedites the number of hearings amid a backlog of over 200 cases.

About

• NAA is a statutory body set up under Section 171 of the Central GST Act, 2017 to check whether trade and industry were passing on rate reductions under the Goods and Services (GST) Tax.
• Main function: 
  • To ensure that traders are not realising unfair profit by charging high prices from the consumers in the name of GST.
  • To examine and check such profiteering activities and recommend punitive actions including cancellation of licences.
  • To examine whether additional input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in prices to the recipients.
• Institutional framework:
  • Chairman
  • Four Technical Members
  • Secretary
• Sunset clause for Anti-Profiteering law: In terms of Rule 137 of the CGST Rules, 2017, the Anti-Profiteering Authority shall cease to exist after the expiry of two years from the date on which the Chairman of the Authority enters upon his office unless the GST Council recommends otherwise.
• Maximum time envisaged for resolution of cases:
  • 9 months excluding the time taken by the State-level screening committee and the Standing Committee (maximum 2 months) for processing the complaints.
• Suo moto action:
  • The NAA can take note of any instance of anti-profiteering even without a complaint from a citizen.
  • This can be done because the chairman of the NAA is also a civilian and s/he can also take cognizance of such acts.
  • Even mock purchases can be made by NAA officers to check a trader’s invoice for any profiteering activity.
• Maximum retail price (MRP) written on products is the maximum amount that can be charged from a customer for the product. 
  • MRP is inclusive of GST and charging more than MRP attracts the provisions of Legal Metrology Act.

Source: LM