GST: Two-year sunset for anti-profiteering

A three-stage anti-profiteering structure has been approved

The anti-profiteering body under the coming goods and services tax (GST) regime will be wound up after two years of the roll-out. The mechanism was finalised on Sunday by the GST Council. “The body is only required initially when tax rates change under the new tax regime,” said Revenue Secretary Hasmukh Adhia. The GST takes effect from July 1.

GST rules mandate businesses to pass on the benefits from lower tax incidence, arising from rate reduction and/or input tax credit, to the consumer. Companies held to have not passed on the benefit will be made to forfeit whatever is deemed to