Economy

GST Council gives anti-profiteering body 2 more years

Our Bureau New Delhi | Updated on June 21, 2019 Published on June 21, 2019

Finance Minister Nirmala Sitharaman addressing a press conference on 35th GST meeting, in New Delhi, on June 21, 2019. - Photo: Kamal Narang

Stiffer penalty for delay in depositing profiteered amount

The Goods & Services Tax (GST) Council on Friday decided to extend the tenure of the National Anti-profiteering Authority (NAA) by two more years. It also decided to impose additional payment in case the profiteered amount is not deposited within a month.

The NAA’s term, which was coming to end on November 30, will now be extended to November 30, 2021. The NAA determines whether the benefit of a reduced rate of tax or input tax credit has been passed on, failing which the NAA may order reduction in prices and commensurate benefit to the recipient, impose a penalty and cancel the registration. As on May 1, the authority has passed 65 orders involving established profiteering amount of ₹606 crore.

The meeting was chaired by Finance Minister Nirmala Sitharaman. Giving details about another issue related with the NAA, Revenue Secretary Ajay B Pandey said that if the profiteered amount is not deposited within 30 days, 10 per cent of that amount will be levied as penalty. At present, the company has to pay ₹25,000 as deposit apart from depositing the profiteered amount.

R Muralidharan, Senior Director at Deloitte India, said the expectation now is that the government would frame rules and guidance on what constitutes profiteering so as to reduce potential disputes.

The Council extended the deadline for filing annual return by two more months, to August 30. It also gave in-principle approval for introduction of electronic invoicing in a phased manner for Business-to-Business transactions. E-invoicing will help tax authorities combat tax evasion. Phase 1, which will be voluntary, will be rolled out from January 2020.

Aadhaar for registration

The Council decided to allow Aadhaar to be used for new registration. On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the Council recommended that the issue be examined in detail by the Fitment Committee and brought before the Council at the next meeting. It directed that the issue related to valuation of goods and services in a solar power generating system and wind turbine be placed before next Fitment Committee.

On the GST rate on lottery, the Group of Ministers has submitted its report to the Council.

 

Published on June 21, 2019
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