What is NAA? Functions of National Anti-Profiteering Authority (NAA)

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To keep check on benefits of tax reduction after GST & that should be passed to ultimate beneficiaries, govt. decided to set up National Anti-profiteering Authority (NAA) under new indirect tax regime.

Application by Consumer

NAA is constituted under section 171 of CGST Act, 2017.

NAA is 5 member committee which consists of:

  • Chairman - holds or has held post equivalent in rank to Secretary to GoI.
  • 4 technical members - they are Commissioners of state tax or central tax or have held equivalent posts under existing laws.
  • Secretary to Authority - Additional Director of Safeguards under CBEC is to hold this post.

Functions of Authority

  • Power to determine methodology & procedure
  • It can decide methodology & procedure for deciding whether reduction in tax rates or benefits of input tax credit are passed to consumers thru equivalent reduction in prices.
  • It can order to reduce prices, return benefit that is not passed on to recipient, impose penalty or cancel registration.
  • It can conduct investigation thru Director General of Safeguards for detecting undue profiteering.
  • Authority shall cease to exist after expiry of 2 years from date on which Chairman enters upon his office unless Council recommends otherwise.

Duties of Authority

  • To identify registered individuals who have not passed on benefits after reduction in rate of tax on supply of goods or services or benefit of input tax credit to recipient by way of commensurate reduction in prices;
  • To determine whether any reduction done in rate of tax on any supply of goods or services or benefit of input tax credit is passed on to actual recipient by way of commensurate reduction in prices.
  • To order:
    • reduction in prices of goods & services
    • imposition of penalty if found any irregularities;
    • cancellation of registration in case of violation of guidelines
Duties of Authority

Competition Commission of India (CCI)

  • Competition Act, 2002 came into existence Competition Commission of India (CCI) & Competition Appellate Tribunal (CAT) was established.
  • CCI is composed of as Chairperson & 6 members.
  • Headquarters of this commission is currently in New Delhi.
  • Competition Appellate Tribunal was formed in 2009. It is empowered body by Constitution of India.

Objective of Competition Commission of India (CCI)

  • Remove negative competitive practices
  • Promote sustainable market competition
  • Protect rights of consumer
  • Protect freedom of trade in Indian markets
  • Protect rights of small traders from large traders to ensure their survival
  • Advice & give suggestions to Competition Appellate Tribunal
  • Run informative campaigns & create public awareness about fair competitive practices.

Central Board of Excise & Customs (CBEC)

  • Central Board of Excise and Customs (CBEC) is part of Department of Revenue under Ministry of Finance, GoI.
  • CBEC was formed in 1944.
  • CBEC deals w/task of formulation of policy & laws & implementing same on levy.
  • CBEC is collection of following duties/taxes:
    • customs duties
    • central excise duties on certain items
    • central tax on intra-State supplies of goods & services
    • integrated tax on inter-State supply of goods & services

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