B N Sharma Appointed as Chairman of NAA

Why in news?

The Appointments Committee of the Cabinet (ACC) has appointed senior bureaucrat BadriNarain Sharma as Chairman of National Anti-Profiteering Authority under Goods and Service Tax regime.

FACTS FOR PRELIMS

BACKGROUND

The Union Cabinet in November 2017 had approved setting up of five-member NAA, mandated to ensure that the benefits of GST rate reduction is passed on to customers.

COMMITTEE under NAA

The anti-profiteering framework under new indirect tax regime consists of NAA at top level, standing committee, screening committees in every state and Directorate General of Standards in the Central Board of Excise and Customs.

FUNCTIONING STRATEGY OF NAA

As per structure of anti-profiteering mechanism in GST regime, complaints of local nature will be first sent to state-level screening committee, whilethose of national level will be marked for standing committee. If complaints have merit, respective committees will refer cases for further investigation to Directorate General of Standards, which would in 3 months investigate and send the report to NAA.

If NAA finds that company has not passed on GST benefits, it will either direct entity to pass on benefits to consumers or if beneficiary cannot be identified, the company would be made to transfer the amount to ‘Consumer Welfare Fund’ within a specific time period.

SOURCE – The Hindu.