NAA in Action: It directs officers to utilise power of inspection and search to collect evidence against suppliers not passing GST rate cut benefits to customers.

NAA also directed to take up the complaints filed by common consumer on priority. Below is the office memorandum issued by Secretary, NAA to all commissioners / principal commissioners, field officers.

Office Memorandum

Sub: Reduction in the rates of tax- Anti Profiteering provision.

I have been directed to invite your kind attention to the recent amendments effected by the Government of India vide Notification dated 14/06/2021 vide which the rates of tax have been reduced and/or benefit of input tax credit has permitted in respect of supplies of goods and services and to state that section 171 of the CGST Act 2017 envisages that the benefit of tax-rate reduction and/or Input Tax Credit should be mandatorily passed on by the suppliers to recipients of the Goods and/or Services. The suppliers are, therefore, required to commensurately reduce the price of each of the supplies of Goods and Services made by them so that benefit of the reduction in tax rates and/or of input tax credits is passed on to the recipients/consumers.

In the context, I have been further directed to request you to take all possible steps envisaged under the GST Laws to ensure that the legislative intent of Section 171 of the CGST Act is complied with and to issue appropriate direction to your officers to take action as mandated under Section 171 of the CGST Act and wherever required, to utilise the power conferred vide provision of Section 67(12) of the CGST Act for collection of evidence which may be required to take action against errant suppliers of various goods and services.

I have also been directed to request you to take up the complaints filed by common consumer on priority and to forward the same to the Anti-Profiteering apparatus as provide in Rule 123 of the CGST Rules, 2017, i.e. the State-level Screening Committees and the Standing Committee on Anti-Profiteering.

A.K. Goel
(Secretary, NAA)

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