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FICCI wants abolition of anti-profiteering provisions in GST law

This is to allow market forces to determine prices of goods and service

Topics
GST | FICCI | anti-profiteering

IANS  |  New Delhi 

gst, tax
Representational image.

Industry body has called for abolition of provisions in the law to allow market forces to determine prices of goods and service.

The plea has been made in a set of pre-Budget recommendations submitted by the federation to the Finance Ministry for implementation in FY22 Budget.

The recommendations come at a time when the National Authority (NAA) has become active and is actively awarding penalties to companies for breach of regulations that prohibit an entity to keep prices of their goods and services higher even if rates have have fallen. The NAA had charged companies such as Samsung, P&G, McDonalds and others for not bringing down the prices of their products even though rates have fallen.

had said that the tenure of NAA was initially prescribed for a two-year period and with GST law largely settled, it is recommended that the determination of prices should be left to the market forces and the provision of anti-profiteering in the GST law should be discontinued with prospective effect.

However, with GST rates still far from being settled and GST Council still to work out rates to eliminate inverted duty structure in several products, its is unlikely that NAA will be discontinued at this juncture. In any case, a decision on discontinuing NAA will require consensus from states and a decision will have to go through the GST Council.

had said that lack of guidelines on the subject is just adding to ambiguity in implementation of anti-profiteering provision by the industry, justifying its case for abolition of such provisions.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, December 21 2020. 14:03 IST
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