CBIC has notified that the Competency Commission of India (CCI) will take the place of the National Anti-Profiteering Authority (NAA) for GST anti-profiteering complaints, i.e., CCI will be stepping into the shoes of the NAA, from December 1, 2022.
The CCI has been empowered to investigate whether or not a registered person’s use of input tax credits or a reduction in the tax rate has actually resulted in a corresponding reduction in the price of the goods or services or both supplied by him.
The CBIC made this amendment in conformity with earlier news reports that the CCI would replace the NAA. In light of this, CBIC has officially confirmed that the CCI will have the authority to handle complaints pertaining to anti-profiteering.
The CGST Rules established an initial term of office for the NAA, which was periodically extended by amendments to these rules. However, with the current amendments to the rules, such provisions have been completely removed from the CGST Rules.
This amendment/development confirms that the anti-profiteering provisions are going to stay in the GST laws more or less permanently, contrary to the initial belief that they were meant to be temporary. That’s in contrast to the way it seemed at first, when it seemed like the anti-profiteering provisions would only be in place temporarily. While the Courts deliberate on whether or not the anti-profiteering provisions are constitutional, the industry would welcome a uniform methodology to determine whether or not profiteering has occurred and, if so, how much profiteering has occurred.
CBIC notifications on CCI replacing NAA for Anti Profiteering Complaints and corresponding amendments in CGST Rules
CBIC Central Tax Notification 23/2022 dated 23/11/2022: CCI to handle GST anti-profiteering cases from December 1, 2022
This notification seeks to empower the Competition Commission of India (CCI) to handle the anti-profiteering cases under CGST Act, 2017 with effect from December 1, 2022.
CBIC Central Tax Notification 24/2022 dated 23/11/2022: CGST (4th Amendment) Rules 2022 to effect changes required for empowering CCI by replacing NAA for handling GST anti-profiteering cases from December 1, 2022
This notification seeks to make corresponding amendments in the CGST Rules, 2017, i.e. omission of CGST Rules 122 (Constitution of NAA), 124 (Appointment/ Salary of Chairman/ Members of NAA), 125 (Secretary to NAA), 134 (Decision to be taken by the majority at NAA) and 137 (Tenure of NAA).
Further, the Explanation (a) after the CGST Rule 137 has been amended to stipulate that the ‘Authority’ means the one notified u/s 171(2) of the CGST Act 2017, being the CCI.