Approach:

• Introduce the answer with functions of NAA and CCI.
• Discuss the foreseen implementing challenges in body part.
• Conclude the answer with futuristic view.

Answer:

The NAA was set up in November 2017 under Section 171A of the GST law to check unfair profiteering activities by registered suppliers. Its core function is to ensure that benefits of reduction in GST rates on goods and services and of the input tax credit are passed on to consumers by way of reduction in prices.

CCI was established to enforce the law under Competition Act, 2002. It is tasked with the job of eliminating anti-competitive practices, protecting the interest of consumers and ensuring free trade in general in the economy.

Challenges:

• Transfer of all pending cases from NAA to CCI and forming a special bench for adjudication may take some time before things ease out.
• Jurisdictional high courts will consider remanding all the writ petitions filed in profiteering cases to CCI.

While it is a welcome step to have CCI as the body since it has the institutional maturity and is adequately positioned to handle pricing matters. However, the fundamental issue of what would constitute “commensurate reduction in price” and various methods employed by company like increasing grammage, practice of zeroing etc. shall continue to remain disputed before various High Courts.