Comments
National Anti-Profiteering Authority (NAA) on Wednesday urged tax officials to ensure benefit of GST rate cut on Covid-related materials. It has also called to prioritise common consumer complaints.
NAA, a statutory mechanism under GST Act, is assigned to ensure the commensurate benefits of the reduction in GST rates by the GST Council and also to make sure the Input tax credit are passed on to the recipients by way of commensurate reduction in the prices by the suppliers.
In an office memorandum (OM) sent to top GST officials in the Centre as well in States, NAA Secretary AK Goel requested them “to take all possible steps envisaged under the GST Laws to ensure that the legislative intent of Section 171 of the CGST Act is complied with and to issue directions to your officers to take action as mandated” under the law. Further, power under the law to be used for collection of evidence which may be required to take action against the errant suppliers.
“I have also been directed to request you to take up the complaints filed by consumers on priority and to forward the same to the Anti-Profiteering apparatus i.e., the State level screening committee and the Standing Committee in Anti-Profiteering,” Goel wrote.
Commenting on the OM, Rajat Bose, Partner with Shardul Amarchand Mangaldas said it is a step in the right direction. “The government should give wide publicity to Section 171 of the CGST Act and educate the consumers of their rights against companies who are not passing on the benefit of reduction in GST rates on Covid-related items,” he said
The GST Council, in its meeting on June 12, decided NIL or lower rates of GST for 18 Covid-relief products for a limited period. These include medicines, hand sanitisers, pulse oximeters, temperature checking equipment beside others. Accordingly, Finance Ministry issued a notification dated June 14 prescribing NIL tax for medicines such as Tocilizumab and Amphotericin B, and 5 per cent GST on Remdesvir and Heparin (anti-coagulant).
Among other products, 5 per cent GST will be applicable for hand sanitisers, pulse oximeters and oxygen concentrators/ generators beside others.
National Pharmaceutical Pricing Authority (NPPA) has already asked drug manufacturers and marketing companies, formulations and medical devices to revise the Maximum Retail Prices (MRP) based on lower GST. More importantly, it has asked companies to ensure compliance of lower tax on existing stock.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.