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If GST benefits not credited to the consumers entities will face problems : Reports

If GST benefits not credited to the consumers entities will face problems : Reports
Akhil Singh

Government threatens to cancel registrations


According to reports, the central government has warned that registration of organisation will be cancelled along with heavy penalties if it will not pass on GST’s benefits to the consumers.

This threatening and warning process is going- on from a long time as they are afraid of anti-beneficial provisions to ensure that gains of GST through lower taxes and input tax credit for taxes paid at all stages are passed on to consumers. At the same time, it also wants to ensure that in cases where the levy is going up, companies should not be able to take extra advantages.

REPRESENTATIONAL IMAGE

The 3 Stage Plan

The GST Council has approved a three-stage process as the complaints will be first verified by a standing committee of officers. If the panel finds the case genuine, it will be sent to director general of safeguards, which will investigate the case. Based on the report, Anti-Profiteering Authority will decide the case. From the time the complaint is lodged, the entire process should be completed in eight months, the rules finalised are finalised by the council itself.

Tax practitioners on GST

Tax practitioners said that cancellation of registration is too harsh, given that the rules are too open-ended. A consultant said in their current form, the provisions can be misused by rivals, who can lodge a complaint against a company, which will have to answer queries.
They also said the rule are very broad and difficult to implement.

Government is taking the references from Australia and Malaysia when they applied GST

The government to play it safe with the antiprofiteering provisions as Malaysia also saw a price surge in various segments after it introduced GST. Australia applied this and used the clause to ensure that consumer interest was protected.

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