Next GST Council Meet To Decide On Anti-Profiteering Mechanism

• GST Council will soon finalise a mechanism to operationalise anti-profiteering clause.
  
• The anti-profiteering law states that businesses have to pass on the benefits of lower taxes to consumers.

The Goods and Services Tax (GST) Council, at its next meeting later this week, will finalise a mechanism to operationalise anti-profiteering clause which seeks to protect consumer interest, Finance Minister Arun Jaitley told the Lok Sabha on Tuesday.

The all powerful GST Council comprising state finance minister will meet on August 5 to take stock of implementation of GST which was rolled from July 1.

The anti-profiteering law simply states that the businesses have to pass on the benefits arising out of lower taxes to the consumer. As per Clause 171 of GST Act, it is mandatory to pass on the benefit of a reduction in the rate of tax or from input tax credit to the consumer by way of commensurate reduction in prices.

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Referring to concerns raised by members with regard to impact of GST on prices, Jaitley said it would be mandatory for manufacturers to pass on the benefits of reduction in taxes to consumers.

He hoped that the decision of price cut by automobile sector on account of benefit of input tax credit would be followed by others manufacturers.

The finance minister was replying to a discussion on Supplementary Demands for Grants which was later passed by the Lok Sabha.

The industry was resistant to this clause, he said, adding, it has been put in the GST law for initial few years to save the interest of consumers.

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