Anti-profiteering body can act sans complaints

Prelims level : Taxation Mains level : GS - III
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Consumer complaints are not the only trigger for the National Anti-Profiteering Authority (NAA) to act but also to check a trader’s invoice for profiteering.

The NAA was set up under Section 171 of the Central GST Act, 2017 to check whether trade and industry were passing on rate reductions under the Goods and Services (GST) Tax.

National Anti-Profiteering Authority (NAA)

  • • NAA is an apex body with an overarching mandate under Goods and Services Tax (GST) regime so as to ensure the benefit of tax reaches consumers.
  • • The NAA is tasked with ensuring full benefits of reduction in tax on supply of goods or services flow to consumers.


NAA will be headed by senior officer of level of a Secretary to Union Government and shall have four technical members from Centre and/or States. The chairman and four members will be less than 62 years of age.

Powers and functions

  • • If NAA finds that company has not passed on benefits of tax reduction, it can direct entity to pass on benefits to consumers along with interest from the date of collection of the higher amount till date of return of such amount.
  • If the beneficiary cannot be identified, NAA can ask company to transfer amount to the ‘Consumer Welfare Fund’, as provided under Section 57 of CGST Act.
  • In extreme cases NAA can impose a penalty on defaulting business entity and even order cancellation of its registration under GST.
  • NAA also has power to cancel registration of any entity or business if it fails to pass on benefit of lower taxes under GST regime to consumers, and empowers consumers to approach it in case of any complaint.
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