Profiteering:
- Profiteering means unfair profit realized by traders by manipulating prices, tax rate adjustment etc.
- In the context of the newly launched GST, profiteering means that traders are not reducing the prices of the commodities when the GST Council reduces the tax rates of commodities and services.
National Anti-Profiteering Authority (NAA):
- Type of body: It has been constituted under Section 171 of the Central Goods and Services Tax Act, 2017.
- Objective: To ensure that any reduction in GST rates is passed on to the consumers by a commensurate reduction in the price of goods and services.
- Functions:
- It will identify GST taxpayers who have not passed on such benefits by reducing prices.
- In the event of a taxpayer not reducing prices, the NAPA may order a reduction in prices, impose penalties or cancel the registration of a person.
- Structure: The NAA will be headed by a senior officer of the level of Secretary to the Government of India. There will be four Technical Members from the Centre and/or the States.
- Tenure: The NAPA will cease to exist two years after the Chairman takes charge, unless the GST Council recommends otherwise.
