GST: Ordinance likely to give teeth to anti-profiteering clause

A legislation for penal action is required both at the Centre and state levels

The government might bring in an ordinance to penalise those who try to make quick money under the goods and service tax (GST) regime.

With the GST roll-out scheduled on July 1, the government might have to use this route to ensure a penalising provision is in place.

A proposed anti-profiteering body might be asked to ensure that the new tax regime is not misused, input credits are passed on and customers are not fleeced. The GST law provides such a cover but it does not specify penal action.

A legislation for penal action is required both at the Centre