New Delhi: A day after notifying substantial reduction in goods and services tax (GST) rates for over 200 items, the Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the establishment of the much-anticipated National Anti-profiteering Authority (NAA) to ensure that benefits of such tariff cuts are passed on to consumers.
The “anti-profiteering” measures will provide an institutional mechanism to ensure that the full benefits of input tax credits and GST rate cuts flow to the consumers. This institutional framework comprises the National Anti-profiteering Authority, a Standing Committee, Screening Committees in every state and the Directorate General of Safeguards in the Central Board of Excise and Customs (CBEC).
The National Anti-profiteering Authority will be headed by a senior officer of the level of secretary to the central government with four technical members from the centre and states. A selection panel led by cabinet secretary P.K. Sinha has already started consultation with states to finalize the members of the panel.
The authority will have a sunset date of two years from the date on which the chairman assumes charge. The chairman and the four members of the authority have to be less than 62 years.
