Giving in to public outcry, the Finance Ministry has simplified the GST profiteering complaint form (Form) with the objective to reduce the application process. The idea behind the move is to ensure that the common man finds it convenient and easy to fill the Form and report any profiteering activities employed by businesses post-GST roll out. This should be possible for a common man without requirement of assistance from any GST practitioner.

Total number of columns in the new Form are 16 as compared to 44 columns in earlier form and the form now contains 12 mandatory fields, much less in number compared to mandatory columns in earlier form.

According to the official statistics, during the period (July, 2017- January, 2018), the standing committee and the screening committee received around 170 complaints from consumers against businesses for not passing on benefits of tax rate reduction by introduction of GST. 

 The introduction of new Form is the reflection of the numerous representations made by various stakeholders (stressing the complicated nature of the form and imminent need to shorten the form) to the standing committee. 

Another factor that contributed to the issuance of revised Form is that applicants found the original form structure is too clumsy and cumbersome.

List of certain mandatory disclosures to be divulged under the old form by the applicant are the following:

·    The actual price or value charged per unit pre-GST and the same post GST.

·    Total tax per unit and the reduction in tax amount post GST. 

·    Details of pre-GST rates of excise duty, VAT, service tax, luxury tax charged.

·    Self-attested copies of all documentary evidences like proof of identity, invoice, price list and detailed working sheet. 

List of certain mandatory disclosures to be divulged under the new Form by the applicant are the following:

·    Name, Address, Contact Details and proof of identity of applicant.

·    Supplier name and address.

·    Goods or service for which the application is being filed.

·     The price value per unit and the MRP pre and post GST.

·     Enclose evidence like copies of invoice or price list to prove that the benefit of tax rate reduction or benefit of input tax credit has not been passed on to consumers. 

GST Profiteering Complaint Processing Structure:

·       In the first instance of screening complaints at state level will be sent to the state-level screening committee and at national level to the Standing Committee. 

·       At second level screening, complaints identified as genuine are referred to the Directorate General of Safeguards (DGS) for further investigation. 

·       In the final stage, the Anti-Profiteering Authority will scrutinize the DGS report (if any) for taking further action resulting in imposition of fine and penalty like cancellation of registration. 

One can hope that the revised anti-profiteering application will replace burdensome and outdated columns in old form with simplified and easy columns and aid applicant in easy and swift filing of the form – ensure that the process is applicant friendly and saves a lot of time, money and energy to the applicants.

Research inputs by Paruchuri Baswanth Mohan