GST :Anti Profiteering clause a thorn

New Delhi, profeteringJune 29: As Time clicks and rules still unclear India is bracing for new tax regime from July 1. The Industry and business community is worried about anti -profiteering clause introduced in the GST bill. The industry experts are worried because the government has not clearly specified any guidelines regarding the following questions arisen by industry.

* How do the businesses compute the benefit resulting from increased credits
and reduction in rates?

* Which profit should be considered for passing on benefits to customers net
profit or gross profit?

* How will be the profit level be calculated at a company level or product level?

* Can companies add additional expenses which they are required to incur due to
GST while computing the cost and then arrive at the benefit?

* The term 'commensurate reduction' in the price’ is not clearly defined in the Act or draft Rules and it may lead to the discretionary exercise of power by the tax authorities? so that Inspector Raj will take place.

However, Government said that on the recommendation of the GST Council, they would appoint constitution of the National Anti-Profiteering Authority, Standing Committee and State level Screening Committee and these bodies will determine whether prices are reduced of various items based on the complaints received from consumers.

Experts say that government has introduced an anti-Profiteering clause to check Inflation and also to impart consumer confidence regarding Price rise.

Finally, industry experts have demanded that guidelines regarding methodology, including calculations and periodicity, to reflect such commensurate reduction before GST is implemented from July 1, 2017. Let's hope that government releases guidelines so that Industry can pass on benefits to customers under the new tax regime.