Congress questions fate of National Anti-Profiteering Authority amid GST rate cuts

The Congress on Saturday raised concerns about the future of the National Anti-Profiteering Authority (NAA) after the government announced its decision to virtually abolish it.

With the GST Council rationalizing GST rates by removing the 12 and 28 percent tax slabs, effective from September 22, the Congress party is questioning whether the NAA will be revived to ensure rate cuts benefit all consumers.

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The NAA was established under Section 171 of the Central Goods and Services Tax Act, 2017, to monitor whether GST reductions were reflected in lower consumer prices. Its mandate also included ensuring that businesses passed on input tax credit (ITC) benefits.

However, the government issued a notification on September 30, 2024, abolishing the authority with effect from April 1, 2025. The move followed criticism that the NAA suffered from delayed investigations and lacked a clear methodology for calculating profiteering.

Congress general secretary (communications) Jairam Ramesh asked whether the NAA would now be given a new lease of life and how the government planned to ensure that the benefits of rate reductions would not remain confined to “a few select individuals.” In a post on X, he questioned the rationale behind abolishing the authority, stressing its importance in protecting consumer interests.

Following the Modi government’s announcement of a “Next-Gen GST,” several opposition-ruled states have demanded new anti-profiteering mechanisms. They have voiced concerns that companies might pocket tax benefits instead of passing them on to consumers.
States are seeking a guarantee that their GST revenue will be protected, proposing compensation for losses stemming from the rate cuts.