The Government of India has released anti-profiteering rules under Goods and Service Tax on tuesday, according to which the government will cancel the GST registration of any entity if it does not comply with the provisions of passing the lower taxes benefit or input tax credit to consumers in a stipulated way.
while there has been provided a sun set period of 2 years, the anti-profiteering authority will take a period of 8-11 months in completing the whole process of complaint, investigation and action.
The rules has proposed a five-member authority to be set up which will be headed by a secretary level officer.
The authority will have the power of passing an order to recover the amount including interest which is not returned.
The authority has been set up for 2 years initially unless this period has been extended by the GST council.
The penal shall necessarily dispose off the complaint within a period of 2 months, Once the penal has been satisfied with the nature of the complaint it would refer the complaint to the Director General of Safeguards, who will conduct proper investigation of the matter and it will have power to summon any person for producing evidence.
According to the rules, such enquiry shall be deemed as judicial proceedings.
The authority shall determine whether an entity is guilty or not within a period of three months of receiving the report from the Director General of Safeguards.
The majority of the authority shall decide the matters.