TIWN

New Delhi, June 24 (TIWN) The National Anti-Profiteering Authority (NAA) has directed GST officials to ensure that the reduced tax rates on Covid-related items are passed on to the consumers.
It further asked GST officials "to all possible steps evisage the GST laws". "I have also been directed to directed t request you to take up the complaints filed by common consumers on priority and to forward the same to the anti-profiteering apparatus," said the office memorandum. In terms of Section 171 of the CGST Act, 2017, the suppliers of goods and services should pass on the benefit of any reduction in the rate of tax or the benefit of input tax credit to the recipients by way of commensurate reduction in prices. The wilful action of not passing on the above benefits to the recipients in the manner prescribed is known as "profiteering". M.S Mani, Senior Director, Deloitte India said: "Businesses dealing with medical supplies that have undergone a GST rate reduction need to ensure that they have adequate documentation to demonstrate that the rate cuts have been passed on to the consumers."
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