The GST anti-profiteering ‘weapon’
This new 'weapon' in the arsenal of the Union government has been designed and launched as part of the Goods and Services Tax
We expect companies to cooperate. We hope we don’t have to use the weapon". This was the threat issued by Hasmukh Adhia, India’s revenue secretary (“GST: Hasmukh Adhia warns industry against hiking prices arbitrarily", The Indian Express, 20 May). Adhia was demanding “cooperation" from corporate India on pricing of their goods and services after the implementation of goods and services tax (GST). In other words, he implied that the pricing of goods and services should be in compliance with the government’s expectations. If companies failed to comply, he warned that the government has a weapon to unleash on them—the “anti profiteering" clause. This new “weapon" in the arsenal of the Union government has been designed and launched as part of the GST Bill. The government can now create a new “Authority" which will decide whether businesses have reduced their prices “enough" when there is a reduction in the GST rate of a particular good or service.