GST impact: Companies grapple with absence of anti-profiteering norms

The National Anti-profiteering Authority is interacting with fast-moving consumer good and pharma companies to understand if GST benefits are passed on to consumers

The jury  is still out on the effectiveness of anti-profiteering provisions in the new indirect tax regime. The government is yet to come out with guidelines on computation of profiteering, leaving businesses wary of the provisions.

“Lack of clear instructions on how reduced prices are to be decided is making businesses apprehensive,” says Pratik P Jain, partner and leader, indirect tax, PwC.

The absence of any methodology to compute the benefit has given a lot of discretionary powers to taxpayers, consultants