How to File Complaint of Anti Profiteering Under GST

How to File Complaint of Anti Profiteering Under GST

With the Implementation of GST, one of the areas which has invited the most attention of all three stakeholders i.e. Government, Suppliers and Customers has been Anti Profiteering. On one hand where the government has been stern on the cases of non passing of profits to customers, suppliers have been confused amidst non availability of modus operandi to arrive at accurate tax benefits and continuous pressure from both government and customers.

In this short article we are discussing how to file a Complaint of Anti Profiteering pursuant to Section 171 of CGST Act, 2017 to Central Standing Committee or State Screening Committee. We will discuss the Form and Address at which the same is to be filed.

Who Can File Such Complaint?

Anyone. Details of Law are as under.

Pursuant to Rule 128 of CGST Rules, 2017,

The Standing Committee shall, within a period of two months from the date of the receipt of a written application, in such form and manner as may be specified by it, from an interested party or from a Commissioner or any other person, examine the accuracy and adequacy of the evidence provided in the application to determine whether there is prima-facie evidence to support the claim of the applicant that the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has not been passed on to the recipient by way of commensurate reduction in prices.

Further, All applications from interested parties on issues of local nature shall first be examined by the State level Screening Committee and the Screening Committee shall, upon being satisfied that the supplier has contravened the provisions of section 171, forward the application with its recommendations to the Standing Committee for further action.

Where to File Such Complaint?   

Local Applications of Interested Parties must be filed first to State Level Screening Committee and subsequently can be forwarded to standing committee if deemed fit by screening committee. Address of Screening Committee of State Level & Standing Committee are as under:-

How to File Such Complaint

Download the Form from Link Below and fill the Form as per details provided in the instructions and necessary documents duly attested.

http://www.cbec.gov.in/resources//htdocs-cbec/gst/format-filing-anti-profiteering-application.pdf

or

https://www.dropbox.com/s/n3jodky8ipyjf4e/format-filing-anti-profiteering-application.pdf?dl=1

Once the Complaint is filed, it will be acted upon within two months from date of receipt of Written application. Where the Standing Committee is satisfied that there is a prima-facie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of Safeguards for a detailed investigation.

The Director General of Safeguards shall conduct investigation and collect evidence necessary to determine whether the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices.

The Director General of Safeguards shall, before initiation of the investigation, issue a notice to the interested parties containing, inter alia, information on the following, namely:-

(a) the description of the goods or services in respect of which the proceedings have been initiated;

(b) summary of the statement of facts on which the allegations are based; and

(c) the time limit allowed to the interested parties and other persons who may have information related to the proceedings for furnishing their reply.

The Director General of Safeguards may also issue notices to such other persons as deemed fit for a fair enquiry into the matter. The Director General of Safeguards shall make available the evidence presented to it by one interested party to the other interested parties, participating in the proceedings.

The Director General of Safeguards (DGS) shall complete the investigation within a period of three months of the receipt of the reference from the Standing Committee or within such extended period not exceeding a further period of three months for reasons to be recorded in writing as allowed by the Standing Committee and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records. Further, DGS has power to summon.

Final Authority Proceedings

(1) The Authority shall, within a period of three months from the date of the receipt of the report from the Director General of Safeguards determine whether a registered person has passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.

(2) An opportunity of hearing shall be granted to the interested parties by the Authority where any request is received in writing from such interested parties.

(3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, the Authority may order-

(a) reduction in prices;

(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be, in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Fund referred to in section 57;

(c) imposition of penalty as specified under the Act; and

(d) cancellation of registration under the Act.

Before Parting….

Filing a Complaint is a very sensitive matter for both supplier and recipient as it will involve a lot of administrative resources and has wide ramifications to the extent of cancellation. In light of such fact, this should be judiciously undertaken where there is a clear unjust cases of profiteering and no resolution is provided by the concerned supplier despite regular mails and verbal conversation.

CA Ankit Gulgulia (Jain) | +91-9811653975

Related Tags Antiprofiteering, CGST, How to