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Businesses to be Penalized under GST Anti-Profiteering Clause
June 15, 2017
Firms found guilty of not passing the benefit of tax reduction to their customers may be asked to deposit money in consumer fund as per GST anti-profiteering clause. Hasmukh Adhia, the revenue secretary, said that the provision for this clause is made under section 57 of the Central GST Act to ensure fair practices in the trade.
Adhia said that there are companies which are oligopolies and thus have a high level of market control for certain commodities. If they decide to not pass on the advantage of tax benefit under GST they will be asked to drop the prices. If they won’t comply, they will be asked to deposit the profits into the consumer welfare fund.
