10 FAQs on ‘Anti-profiteering’ activity under GST

1. What is an ‘Anti-profiteering’ activity?

The suppliers of goods and services should pass on the benefit of any reduction in the rate of GST on such supplies or the benefit of input tax credit to the recipient by way of commensurate reduction in prices. The wilful action of not passing of such above said benefits to the recipient amounts to “profiteering”.

2. How is the anti-profiteering mechanism under CGST act?

CGST Act, 2017 mandates a 3-tier structure for the investigation and adjudication of the complaints regarding profiteering.

1. National Anti-profiteering Authority
2. Directorate General of Anti-profiteering
3. State-level Screening Committees and Standing Committee

4. How does the screening committee and Standing committee work?

GST council may constitute a standing committee, having members from both state and central governments.

Every state shall constitute one state-level screening committee. It will have one member from state government and one-member from central government as nominated by respective appropriate authority.

State screening committee shall forward an application relating to supplies of goods or services of a local nature to the Standing Committee if it is prima facie satisfied that Section 171 of the Act has been contravened. [Rule 128 (2) of CGST Rules, 2017]

If the standing committee satisfies that supplier has contravened the section 171 of CGST act, the case shall be transferred to DG Anti-profiteering for further investigation. [Rule 129 (1) of CGST Rules, 2017]

The committees shall complete the investigation within a Period of two-months from the date of the receipt of the application.

4. What is the role of DG Anti-profiteering in the Anti-profiteering mechanism?

DG Anti-profiteering is the investigating-arm in the anti-profiteering mechanism. It can summon the interested parties or make inquiry or call for the relevant documents for the investigation. It can take help from technical expert in the due course of investigation. [Rule 132 of CGST Rules, 2017]

DG Anti-profiteering shall complete the investigation within a period of three-months from the date of receipt of the report from the standing committee. The period can be extended for another three months. [Rules 129 (6) of CGST Rules, 2017].

5. Who can file the complaint against profiteering?

Any consumer or organisation experiencing the non-reduction in the price of the goods or service despite reduction in the rate of GST can file the complaint with proper evidences.

Any supplier, trader, wholesaler or retailer, who could not get benefit of input tax credit on account of reduction in the rate of GST, can file the complaint with proper evidences.

6. How can I file complaint against profiteering?

There are multiple ways through which aggrieved consumers or suppliers of goods and services can register their complaints against profiteering:

i. Online complaint facility:

Complainant can register an online complaint at http://www.naa.gov.in/complaint.php

Click here to see the Guideline to register online-complaint http://www.naa.gov.in/page.php?id=guidelines-for-consumers

ii. Via Mail:

User can mail the complaint at

Agencies	Mail-Id	Nature of the complaint
National Anti-profiteering Authority	secretary.naa@gov.in	Grievance-redressal
Standing Committee	sc.antiprofiteering@gov.in	Complaints of the nature of national-level
State-Screening Committees	State-wise Mail-Ids: http://www.naa.gov.in/docs/SCREENING%20COMMITTEES_UPDATED.xlsx	Complaints of the nature of state-level or local

iii. By Post:

Agencies	Postal-Addresses
National Anti-profiteering Authority	National Anti-profiteering Authority Dept. of Revenue, Ministry of Finance 6th Floor, Tower One Jeevan Bharati Connaught Place New Delhi-110 001.
Directorate General of Anti-Profiteering	Directorate General of Anti-profiteering, Dept. of Revenue, Ministry of Finance 2nd floor, Bhai Veer singh sahitya sadan, Bhai Veer singh marg, Gole market, New Delhi -110 001.
Standing Committee	Directorate General of Anti-profiteering, Dept. of Revenue, Ministry of Finance 2nd floor, Bhai Veer singh sahitya sadan, Bhai Veer singh marg, Gole market, New Delhi -110 001.

The complaints can be sent to standing committee at,

E-mail ids: sc.antiprofiteering@gov.in

7. How can I know the status of my complaint against profiteering?

The complainant can track the online-complaint through http://www.naa.gov.in/track-complaint.php

Complainant can also contact at :

Directorate General of Anti-profiteering,

of Revenue, Ministry of Finance, 2nd floor,

Bhai Veer singh sahitya sadan,

Bhai Veer singh marg,

Gole market, New Delhi -110 001.

Contact no.: 011- 2374 1544,

011- 2374 1542,

Email-id: anti-profiteering@gov.in

8. Will I be eligible to recover the amount on account of my complaint against profiteering?

Under Rule 127 of CGST Rules, 2017, National Anti-profiteering Authority can compel the defaulter to return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of 18% from the date of collection of higher amount till the date of return of such amount. Only the recipient is the eligible to receive the amount.

9. Will NAA provide opportunity of personal hearing to whom complaint is been made?

An opportunity of hearing shall be granted to the interested parties by the Authority if the request is received in writing from such interested parties [Under Rule 133 (2) of CGST Rules, 2017].

10. What is the consumer welfare fund?

A separate fund has been created by the central government under to section 57 and 58 of the CGST act, 2017 which would be utilised for the welfare of the consumers in the country. When the recovery of the amount including interest not returned in case the eligible person does not claim return of the amount or the recipient is not identifiable, in such conditions, the recovered amount is deposited in the consumer welfare fund.

Last updated on 24.08.2018

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