In order to prevent any rise in price of commodities after goods and services tax (GST) Law implementation, the GST council in its 10th Meeting on 18 February is likely to finalise an anti-profiteering clause in the draft GST law to ensure that trade and industry pass the benefits of reduction in tax rates to consumers.
The government is keen that benefit of lower taxes is passed on to consumers and so an anti- profiteering measure has been incorporated into the draft law. Anti-profiteering clause provides for constituting an authority to ensure its implementation which will examine whether input tax credits availed by any registered taxable person, or the reduction in the price on account of any reduction in the tax rate, have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him.
The GST council in its meeting is also expected to finalise the definition of 'agriculture' and 'agriculturist' as well as the constitution of a 'National Goods and Services Tax Appellate Tribunal' to adjudicate on disputes. If the GST Council approves the revised draft in its meeting, the government will attempt to present it before Parliament in the second half of current Budget Session next month.