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National Anti-Profiteering Authority (NAA)

Posted on : 25 Dec 2019

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  • CGST Act, 2017 mandates a 3-tier structure for the investigation and adjudication of the complaints regarding profiteering.
    • National Anti-profiteering Authority (NAA)
    • Directorate General of Anti-Profiteering (DGAP) [DAGP is the investigating-arm in the anti-profiteering mechanism. It shall complete the investigation within a period of six months of the receipt of the reference from the Standing Committee].
    • State-level Screening Committees and Standing Committee [GST Council has constituted a Standing Committee, having members from both State and Central governments. Every State shall have one State-level Screening Committee. It will have one member from State government and one-member from Central government as nominated by the respective appropriate authority].
  • The National Anti-Profiteering Authority (NAA) was constituted under Section 171 of the Central Goods and Services Tax Act, 2017 to ensure that the reduction in rate of tax or the benefit of input tax credit is passed on to the recipient by way of commensurate reduction in prices.
  • The Authority’s main function is to ensure that the registered suppliers under GST law are not profiteering by charging higher prices from recipients in the name of GST. The legal mandate of NAA is to examine and check such profiteering activities and recommend punitive actions including cancellation of Registration.
  • NAA shall consist of a Chairperson who holds or has held a post equivalent in rank to Secretary to the GoI and four technical members.
  • The government has recently notified the rule changes, inserting a provision in the goods and services tax rules to allow NAA to direct the DAGP to further a probe if there is reason to believe that there has been contravention of norms in respect of goods or services not covered in the latter’s report.
  • It also empowers NAA to summon any person in relation to an inquiry which was earlier limited to the DGAP or its officers only.
  • The tenure of National Anti-Profiteering Authority has also been extended by 2 years.

Article Related Questions

  1. Consider the following statements
    1.In India, there is a three-tier structure for investigation and adjudication of complaints regarding profiteering.
    2.National Anti-Profiteering Authority (NAA) is a statutory mechanism to check the unfair profiteering activities by the registered suppliers under GST.
    3.Both the NAA and Directorate General of Anti-Profiteering (DGAP) can summon any person in relation to an inquiry.
    Which of the above statements is/are correct?

  2. 1.1 and 2 only

    2.2 only

    3.1 and 3 only

    4.1, 2 and 3

    Right Ans : 1, 2 and 3

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