Under the revised draft GST Laws, government has proposed a ‘anti-profiteering’ clause to ensure that any benefit arising out reduction in taxes is passed onto consumer. Experts believe that this move would keep price rise in check.
Original draft GST Laws did not have such clause and it was said that the gains made by companies due to GST must be passed onto consumer.
The Anti-Profiteering clause says that to ensure its implementation, the Centre may set up an authority or entrust an existing authority to “examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in the price of the said goods or services supplied by him”.
The revised draft GST Laws will be taken up for discussion in GST Council meeting on 2nd and 3rd December 2016.