Appointments Committee of Cabinet (ACC) chaired by Prime Minister Narendra Modi has re-appointed Badri Narain Sharma as chairman of the National Anti-profiteering Authority (NAA). He will continue as the NAA chairman for another two years. At present the NAA has three members-J C Chauhan (chairman, tax tribunal, Himachal Pradesh) and Indian Revenue Service (IRS) officers R Bhagyadevi and Amand Shah.
About National Anti-Profiteering Authority (NAPA)
- It is statutory body constituted under Section 171 of Central Goods and Services Tax (CGST) Act, 2017. It was formed in November 2017 in the wake of rate-reduction of large number of items by GST Council in its 23rd meeting at Guwahati, Assam.
- Core mandate: To protect interests of consumers by ensuring that benefits of reduction is GST rates on goods and services made by GST Council and proportional change in Input tax credit passed on to consumers and recipient respectively by way of reduction in the prices by the suppliers.
- Composition of NAPA: It is headed by senior officer of level of Secretary to Union Government. It has four technical members from Centre and/or States. Chairman and four members should be less than 62 years of age.
- Powers and functions of NAPA: (i) Ensure that traders are not realizing unfair profit by charging high price from consumers in the name of GST. (ii) Examine and check such profiteering activities and recommend punitive actions including cancellation of Registration. (iii) Ensure reduction in rate of tax or benefit of input tax credit is passed on to the recipient by way of commensurate reduction in prices.
- Tenure and Extension of NAPA: It was cease to exist two years after the Chairman takes charge, unless the GST Council recommends otherwise (i.e. on November 30, 2019). However, 35th meeting of Goods and Services Tax (GST) Council chaired by Finance Minister Nirmala Sitharaman had extended the tenure of NAPA by two years till November 30, 2021.
Terminology: Profiteering means unfair profit realized by traders by manipulating prices, tax rate adjustment etc. In the context of GST regime, profiteering means that traders are not reducing prices of the commodities when GST Council reduces the tax rates of commodities and services.