ANTI-PROFITEERING PANEL TO LEVY FINES ON FIRMS

New Delhi, June 18: A five-member anti-profiteering authority will be set up to decide on levying penalty if businesses do not pass on the benefit of price reduction to consumers under the goods and services tax regime.

The authority, to be headed by a retired secretary-level officer, can take suo motu action, besides acting on complaints of profiteering.

The GST council, chaired on Sunday approved the anti-profiteering rules.

As per the norms, the authority will have a sunset date of two years and will decide on penalty to be levied. It would ask the businesses to refund the price reduction on a proportionate basis to consumers.

Where the consumer cannot be identified, the amount would be credited to the consumer welfare fund, an official said.

A search-cum-selection committee will be set up for finalising the members of the anti-profiteering authority.

Besides the chairman, the four other members will be joint secretarylevel officers who have been commissioners in central excise and service tax either at the Centre or states.