It is noted that many advertisements, messages are being published in newspapers, social media etc. that benefit of GST needs to be passed on and stern action will be taken if the same is not complied with. It is noted that the present law in respect of anti-profiteering is very vague and open for multiple interpretations. Government has not provided any mechanism or guideline as to when one can say that there is anti-profiteering and how to compute the same.
It is also important to note that pricing in any business is very dynamic feature and its impact cannot be trimmed down only on the basis of taxation. Also, there is a competition act in place to take care of this situation, therefore how a taxation law can restrict businesses pricing especially when the purpose of tax law is not to regulate pricing as per the Constitution of India.
Such loosely drafted provisions can only have high litigation with no any real benefits to the government. Therefore, we urge government to immediately provide guideline as to situations in which one can be said to have been making additional profiteering out of GST and how to compute the same.