Anti-Profiteering: 3rd NAA order too favours industry

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New Delhi | Published: June 7, 2018 6:16:12 AM

Earlier, the NAA had found charges of anti-profiteering baseless against Delhi-based KRBL, which sells India Gate branded basmati rice, and a Honda car dealer in Uttar Pradesh.

Anti-Profiteering, 3rd NAA, GSTThe National Anti-profiteering Authority (NAA) continued to allay the apprehension of harassment of businesses under the goods and services tax (GST) regime, with its third order exonerating elevator manufacturer Schindler India from charges of profiteering alleged by a Delhi-based business. (Reuters)

The National Anti-profiteering Authority (NAA) continued to allay the apprehension of harassment of businesses under the goods and services tax (GST) regime, with its third order exonerating elevator manufacturer Schindler India from charges of profiteering alleged by a Delhi-based business. Although even before the NAA order, the complainant had requested for withdrawal of application citing inadequate understanding of GST provision at the time of filing the complaint in September last year, the authority considered the investigative report of the Directorate General of Safeguard (DGS) before dismissing the petition.

Earlier, the NAA had found charges of anti-profiteering baseless against Delhi-based KRBL, which sells India Gate branded basmati rice, and a Honda car dealer in Uttar Pradesh. The complainant in the Schindler India case had alleged that Schindler had charged GST on installation of an elevator but didn’t deduct the pre-GST taxes such as excise and service, which amounted to imposition of double tax.

The NAA found that the applicant had been charged service tax on the payment made before the commencement of GST on July 1, 2017, which was within the law. Additionally, since the elevator installation took place under the GST regime, the petitioner was charged with GST in separate invoices. Moreover, since the elevators had been delivered to the firm before July 1, there was no scope for providing relief by deducting excise tax on the final tax charged.

“In respect of the two invoices date July 27, 2017 as the installation of the second lift had been completed after coming in to force of the CGST Act, 2017, he was liable to be charged GST at the rate which was prevalent on July 27, 2017,” the NAA order delivered by three members of the authority, including the chairman BN Sharma, said

These orders have soothed the nerves of industry which had been vocal about the potential for misuse of the anti-profiteering provision when it was announced by the GST Council last year.

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