Govt extends deadline for completing GST anti-profiteering probe till March 2021

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December 15, 2020 5:09 PM

The government has extended the deadline till March 31, 2021 for completing GST anti-profiteering investigations, which were to be completed by November this year.

gst, goods and services tax, revenue collection, economic recoveryUnder the GST law, a National Anti-Profiteering Authority (NAA) and a Standing Committee on anti-profiteering have been set up to examine complaints of not passing on tax rate cut benefits to consumers.

The government has extended the deadline till March 31, 2021 for completing GST anti-profiteering investigations, which were to be completed by November this year. Through a notification, the Central Board of Indirect Taxes and Customs (CBIC) extended the deadline for completion of such investigations by authorities, like DGAP, under section 171 of GST Act, till March 31, 2021. In September, CBIC had extended the deadline till November 30, 2020. Section 171 of GST Act deals with anti-profiteering measures.

Under the GST law, a National Anti-Profiteering Authority (NAA) and a Standing Committee on anti-profiteering have been set up to examine complaints of not passing on tax rate cut benefits to consumers. GST was rolled out on July 1, 2017. Directorate General of Anti Profiteering(DGAP) investigates profiteering complaints and submits report to NAA, which passes the final order. DGAP is mandated to complete the investigation within a period of six months of the receipt of the reference from the Standing Committee, which can be further extended by three months.

The GST rules also specify that NAA shall, within a period of six months from the date of the receipt of the report from DGAP, determine whether a registered person has passed on the benefit of GST rate cut or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.

EY Tax Partner Abhishek Jain said the government has further extended timeline for anti-profiteering authorities to complete their investigations, and as such any investigation required to be closed by DGAP by November 30, 2020 can now be completed up to March 31, 2021.

“This extension, much like the previous one, seems to be on account of the limitations posed (inability for businesses to provide requisite data) to the revenue authorities on account of the ongoing pandemic, as well as the quantum of pending cases,” he said.

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