Anti Profiteering in GST law
Anti-Profiteering in GST law:
All the cramps of unrevealed profit motives, this goes to you for having any strategic making of unreasonable profits from goods and services post GST. The government of India is enthusiastic of protecting consumers from profiteering during the implementation of GST. Well, initial phase of any formation or implementation are crucial. Here, in GST case, the same rationale applied. The government is adamant to apply corporation and protection clause in GST. The consumers should not be on compromised on any platform. Guarantee always comes with a heavy cost. Therefore, the Anti-Profiteering clause is introduced so that that the efficient credits and the lower taxes should finally reach without any failure to the consumers.
Not only the compensated benefits should reach the consumers as a result of GST, but the real motivation of protection and fixation of casualties should be maintained too. With this notion of credibility, the government has consistently considered to not to rest the arm on protection alone but also to have vigilant eye on the functionality of the GST law. Savings on central excise duty, entry tax may trigger exceptional high profits, mostly giving chance for profiteering without records in black and white. Whereas, there should not be any confusion on the free flow of goods across states is healthy. This will in fact encourage businessmen to grow and have more productivity, which us on the greater ground of development, is in fact good. But, this should not be also not be ignored that without proper scrutinizing agents, the GST law might not get where it was believed to reach.
To reach “protection of consumers ”. To check unfair pricing before roll-out was the primary focus of the present government. And it is mandatory to pass on any reduction in taxes to the consumers. Yet, the revenue department is likely to finalize the rules pertaining to Anti-Profiteering closer to the GST roll-out dated 1st July of 2017. There is sure the companies jacking up prices before the implementation. The only rule to highlight here is to ensure that companies do not indulge in any unfair pricing before and after GST implementation.
However, experts say that companies are on the heavier side of “timely tend snatching” of benefits from the input tax credit and removal of the cascading impact if taxation under the law of goods and services tax-GST. Reaping the sow of the GST benefits, the consumers have rightfully right to be provided. They have the ultimate right to call for information of change and the “cunning attitude” of sneak out businessmen.