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Sunday , 24 September 2017
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Firms face ban for not passing on GST gains

The government has threatened to cancel the registration of entities that do not pass gains from GST to consumers.

The cancellation of registration is in addition to the power to levy penalty that was prescribed under the law.

The government has repeatedly threatened to invoke anti-profiteering provisions to ensure that gains of GST by way of lower taxes and input tax credit for taxes paid at all stages are passed on to consumers.

At the same time, it also wants to ensure that in cases where the levy is going up, companies do not take unfair advantage.

The GST council has approved three stage process with the complaints being first verified by a standing committee of officers, then it will be sent to director general of safeguards which will investigate the case. Based on report Anti-profiteering authority will decide on the case.

This entire process has to be completed in eight months, the rules finalised.

Tax practitioners said that cancellation of registration is too harsh.

A consultant said in their current form, the provisions can be misused by rivals, who can lodge a complaint against a company, which will have to answer queries.

Malaysia saw a price surge in various segments after it introduced GST.

Australia had successfully used the clause to ensure that consumer interest was protected.

The tax regime will get a Mega launch on 30th June midnight at historic central hall of parliament.

Finance minister Arun Jaitley said president Pranab Mukherjee would be on the dais with PM Narendra Modi.

Manmohan Singh and H D Deve Gowda , have also been invited for the function.

Former Finance ministers , State Cheif minister and finance minister have also been invited.

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