GST: Many loose ends to be tied

Legal and tax experts share some concerns about the revised model GST law

Anti-profiteering clause: The intention of the anti-profiteering clause is to pass on the benefits accruing on account of GST implementation to the final consumer. However, the element of subjectivity over the issue has left both industry and tax experts divided. Section 163 of the revised model GST law gives powers to the central government to constitute an authority to examine whether the benefits enjoyed by business while transitioning to the GST regime such as additional input tax credit, effective rate reduction on the output side have been passed on to the consumer. It provides for penalty in cases where such