21-Jun-2019: Anti-profiteering body NAA's tenure extended by 2 years
The GST Council has extended the tenure of the National Anti-profiteering Authority (NAA) by two years. Finance Minister Nirmala Sitharaman took the decision at 35th GST Council Meet which she chaired for the first time after taking charge of the Finance Ministry under Modi 2.0 government.
The GST Council also decided to impose more stringent penalties for companies engaged in profiteering. If the profiteered amount is not surrendered within 30 days, then the company will face penalty to the extent of 10 per cent of the same. Earlier provisions called for a penalty of Rs 25,000 in addition to the profiteered amount.
NAA deals with customer complaints regarding non-receipt of tax cut benefits.
The GST Council was of the view that NAA should be given an extension of two years as the authority continues to receive complaints of profiteering by companies.
The 35th Meeting of The GST Council was short but has laid the roadmap of a more stringent tax compliance regime and mechanism to plug leakage of revenues of the Government. The Council decided to implement the new GST returns from October 2019 and implement E-Invoicing from January 2020. Both these measures would help the Government track the GST transactions more closely and in further details. Trade and Industry need to gear up for these changes by redesigning their ERP/Accounting Systems to match up to these new returns. A welcome and much-awaited move was also to defer the Annual GST returns and GST Audit till 31st August. Further ,there are indications that the GST rate on Electronic Vehicles and Solar Power Generating Systems may be reduced in the near future. Post The Union Budget, more action is expected from the GST Council.
Soon after the GST was rolled out on 1 July 2017, the government had approved setting up of the NAA for two years to deal with consumer complaints against companies not passing on GST rate cut benefits. The NAA came into existence on 30 November 2017 with BN Sharma taking charge as Chairman. So far, the NAA has passed 67 orders in various cases.
The GST law provides for setting up of benches of appellate tribunal in all states. Although 18 states have got the approval to set up appellate benches, none of these states have operationalised them.
8-Jan-2019: National Anti-Profiteering Authority (NAA)
The National Anti-Profiteering Authority (NAA) has been constituted under Section 171 of the Central Goods and Services Tax Act, 2017 to ensure that the reduction in rate of tax or the benefit of input tax credit is passed on to the recipient by way of commensurate reduction in prices.
Further, the following steps have been taken by the NAA to ensure that customers get the full benefit of tax cuts:
- Holding regular meetings with the Zonal Screening Committees and the Chief Commissioners of Central Tax to stress upon consumer awareness programmes;
- Launching a helpline to resolve the queries of citizens regarding registration of complaints against profiteering.
- Receiving complaints through email and NAA portal.
- Working with consumer welfare organizations in order to facilitate outreach activities.
A number of complaints regarding companies not passing on the full benefits of tax cuts to consumers have been received by the National Anti-Profiteering Authority (NAA).
28-Nov-2017: Badri Narain Sharma Appointed Chief Of Anti-Profiteering Body
Senior bureaucrat Badri Narain Sharma was appointed as the chairman of the national anti-profiteering authority under the GST regime. Sharma, a 1985 batch IAS officer of Rajasthan cadre, is at present additional secretary in the department of revenue.
The Appointments Committee of the Cabinet has approved his appointment to the post in the rank and pay of secretary to the government of India.
The Union Cabinet had on November 16 approved setting up of the five-member authority, mandated to ensure that the benefits of GST rate reduction is passed on to consumers.
As per the structure of the anti-profiteering mechanism in the GST regime, complaints of local nature will be first sent to the state-level screening committee, while those of national level will be marked for the standing committee. If the complaints have merit, the respective committees would refer the cases for further investigation to the Directorate General of Safeguards.
The DG Safeguards would generally take about three months to complete the investigation and send the report to the anti-profiteering authority. If the authority finds that a company has not passed on GST benefits, it will either direct the entity to pass on the benefits to consumers or if the beneficiary cannot be identified, it will ask the company to transfer the amount to the 'consumer welfare fund' within a specified timeline.
The authority will have the power to cancel registration of any entity or business if it fails to pass on to consumers the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator.
According to the antiprofiteering rules, the authority will suggest return of the undue profit earned from not passing on the reduction in incidence of tax to consumers along with an 18 per cent interest, and also impose penalty.
16-Nov-2017: Cabinet approves the establishment of the National Anti-profiteering Authority under GST
The Union Cabinet has given its approval for the creation of the posts of Chairman and Technical Members of the National Anti-profiteering Authority (NAA) under GST, following up immediately on sharp reduction in the GST rates of a large number of items of mass consumption. This paves the way for the immediate establishment of this apex body, which is mandated to ensure that the benefits of the reduction in GST rates on goods or services are passed on to the ultimate consumers by way of a reduction in prices.
The establishment of the NAA, to be headed by a senior officer of the level of Secretary to the Government of India with four Technical Members from the Centre and/or the States, is one more measure aimed at reassuring consumers that Government is fully committed to take all possible steps to ensure the benefits of implementation of GST in terms of lower prices of the goods and services reach them.
It may be recalled that effective from midnight of 14th November, 2017 the GST rate has been slashed from 28% to 18% on goods falling under 178 headings. There are now only 50 items which attract the GST rate of 28%. Likewise, a large number of items have witnessed a reduction in GST rates from 18% to 12% and so on and some goods have been completely exempt from GST.
The "anti-profiteering" measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a Standing Committee, Screening Committees in every State and the Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC).
Affected consumers who feel the benefit of commensurate reduction in prices is not being passed on when they purchase any goods or services may apply for relief to the Screening Committee in the particular State. However, in case the incident of profiteering relates to an item of mass impact with 'All India' ramification, the application may be directly made to the Standing Committee. After forming a prima facie view that there is an element of profiteering, the Standing Committee shall refer the matter for detailed investigation to the Director General of Safeguards, CBEC, which shall report its findings to the NAA.
In the event the NAA confirms there is a necessity to apply anti-profiteering measures, it has the authority to order the supplier / business concerned to reduce its prices or return the undue benefit availed by it along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases, the NAA can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST.
The constitution of the NAA shall bolster confidence of consumers as they reap the benefits of the recent reduction in GST rates, in particular, and of GST, in general.
25-Jul-2017: Committee to identify and recommend Chairman and Members of the National Anti-profiteering Authority
The GST Council has formed a Selection Committee under the Chairmanship of Cabinet Secretary to identify and recommend eligible persons for appointment as the Chairman and Members of the National Anti-profiteering Authority under GST. The National Anti-profiteering Authority is tasked with ensuring the full benefits of a reduction in tax on supply of goods or services flow to the consumers.
When constituted by the GST Council, the National Anti-profiteering Authority shall be responsible for applying anti-profiteering measures in the event of a reduction in rate of GST on supply of goods or services or, if the benefit of input tax credit is not passed on to the recipients by way of commensurate reduction in prices. The National Anti-profiteering Authority shall be headed by a senior officer of the level of a Secretary to the Government of India and shall have four technical members from the Centre and/or the States.
The already notified Rules on Anti-profiteering measures provide that applications seeking to invoke anti-profiteering measures shall be examined by a Standing Committee. However, if the application relates to a local matter which the business is located in only one state, it shall be first examined by a State level Screening Committee. The Standing Committee is empowered to refer cases requiring detailed enquiry to Director General of Safeguards, CBEC who shall give his recommendation for consideration of the National Anti-profiteering Authority.
In the event the National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases the National Anti-profiteering Authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST.
The constitution of the National Anti-profiteering Authority is expected to bolster consumer confidence and ensure all stakeholders reap the intended benefits of GST.
28-Mar-2019: Coffee Board Activates Blockchain Based Marketplace in India
Commerce Secretary, Dr. Anup Wadhawan, launched blockchain based coffee e-marketplace through video conferencing in New Delhi. Speaking on the occasion he said that this pilot project will help integrate the farmers with markets in a transparent manner and lead to realisation of fair price for the coffee producer. Dr. Wadhawan said that the blockchain will also reduce the number of layers between coffee growers and buyers and help farmers double their income.
The project was activated simultaneously by Mr. Jose Dauster Sette, Executive Director, International Coffee Organisation’s (ICO) from Nairobi, Kenya. Rahul Chhabra, India’s High Commissioner to Kenya was also present.
India is the only country in the world where entire coffee is grown under shade, handpicked and sun dried. It produces one of the best coffees in the world, produced by small coffee growers, tribal farmers adjacent to National Parks and Wild Life Sanctuaries in the Western and Eastern Ghats, which are two of the major bio-diversity hot spots in the world. Indian coffee is highly valued in the world market and sold as premium coffees. The share of farmers in the final returns from coffee is very meagre.
Blockchain based market place app for trading of Indian coffees is intended to bring in transparency in the trade of Indian coffee, maintain the traceability of Indian coffee from bean to cup so as the consumer tastes real Indian coffee and the grower is paid fairly for his coffee produced. This initiative will help in creating a brand image for Indian Coffee through traceability in reducing growers dependency on intermediaries by having a direct access to buyers for a fair price for their produce, in finding right coffee suppliers for exporters and within the stipulated time to meet the growing demands and in building a better trust and long term relationship due to increased visibility towards the traceability and transparency of the produce.
Coffee Board is collaborating with M/s Eka Plus, one of the global leaders in Digital Commodity Management platforms for Agriculture for development of Blockchain based marketplace application. Eka Plus have developed the application and a group of 15-20 coffee farmers, exporters, roasters, importers and retailers are already registered on the platform from India and abroad. It is one of the few coffee block chain processor for coffee after France and Ethiopia in the world.
The stakeholder like coffee farmers, traders, coffee curers, exporters, rosters, importers and retailers register on the platform to make trade transactions. The coffee farmer registers credentials like place where coffee is grown, details of the crop, elevation, certificates if any and any relevant information. A block is created for each of the lot the farmer sells on the Blockchain. The credentials of the block/ lot will be stored on the Blockchain throughout its journey and are immutable.
4-Sep-2018: Suresh Prabhu Launches Technology Initiatives for Coffee Stakeholders
Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu launched Coffee Connect - India coffee field force app and Coffee Krishi Tharanga - digital mobile extension services for coffee stakeholders at a function. The mobile app Coffee Connect has been developed to ease the work of field functionaries and to improve the work efficiency. This application provides solution by harnessing the power of mobility comprising the latest technology in easing the whole process of the field activities like digitization of Coffee Growers & Estates with Geo Tagging, collecting the Plantation details. It will also help in transparency in the activities of the extension officers and officials, transparency in subsidy disbursement and real time report generation.
The Coffee Krishi Tharanga services are aimed at providing customized information and services to increase productivity, profitability, and environmental sustainability. The customised services are two ways, 24 X 7 service supports. The “Coffee Krishi Tharanga” is pilot tested in the Chikmagalur and Hassan districts of Karnataka State covering 30,000 farmers during the first year and will be extended to remaining growers in a phased manner. NABARD has partly funded the Pilot project. The solution will help in to reach maximum growers in limited period, efficient, timely, customised advisory, improve the efficiency through digitisation and leverage existing mobile reach for wider delivery of improved technology.
Suresh Prabhu also launched pilot projects on data analytics, artificial intelligence, IOTS and blockchain & smart contract Coffee Board has also identified technological solutions to address some of the perennial coffee production and coffee farming issues and challenges such as rainfall, pests and diseases. Coffee Board in collaboration with EKA Analytics, a global leader in the data analytics and artificial intelligence has developed the hyper local weather forecast, pest (white stem borer) identification and leaf rust disease forecast applications for pilot testing.
Coffee is cultivated in India in about 4.54 lakh hectares by 3.66 lakh coffee farmers and 98% of them are small farmers. Its cultivation is mainly confined to Karnataka (54%), Kerala (19%) and Tamil Nadu (8%) which form traditional coffee tracts. Coffee is also grown in non-traditional areas like Andhra Pradesh & Odisha (17.2%) and North Eastern states (1.8%), with main emphasis on tribal development and afforestation.
In line with the digital transformation initiatives of the Government of India, Coffee Board has taken key digital initiatives for the overall technological advancement of the coffee sector and value chain. These initiatives are aimed at benefiting all stakeholders in the coffee value chain. All these initiatives are intended towards unlocking the potential in coffee sector by leveraging the technology and reach such as mobile. The farmers being the end user the technologies have been built on certain critical principles like ease of use, wider participation, maximize reach and benefit.
19-Feb-2019: Fifth meeting of Island Development Agency held
The Union Home Minister, Shri Rajnath Singh, chaired the fifth meeting of the Island Development Agency (IDA). The Island Development Agency reviewed the progress made towards the program “Holistic development of islands”. Bids for private sector participation in three tourism-based projects have already been invited by the Andaman & Nicobar Administration. They include eco-tourism projects in Smith Island & Long island and tent city project in Aves island. Bids will be invited shortly for one more project in Neil island of Andaman & Nicobar.
Three projects in Lakshadweep have been identified for issue of bids. They include tourism projects in the islands of Kadmat, Minicoy and Suheli Cheriyakara. Environmental Clearance (EC), Coastal Regulation Zone (CRZ) Clearance and all other clearances required for these projects are being obtained upfront, on priority, to attract more number of reputed bidders.
The Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce has issued a notification extending tax incentives for investments made in manufacturing and service sector in islands of Andaman & Nicobar and Lakshadweep. The tax incentives are
- Central Capital Investment Incentive for access to credit (CCIIAC)
- Central Interest Incentive (CII)
- Central Comprehensive Insurance Incentive (CCII)
- Goods and Services Tax (GST) Reimbursement
- Income Tax (IT) Reimbursement
- Transport Incentive (TI); and
- Employment incentive (EI)
Expeditious implementation of the above mentioned projects will provide high economic return to the private sector, satisfactory jobs and additional income to the islanders and enhanced revenue to the Government - a win-win situation for all. Above all, stability of the island eco-system will be maintained with effective execution of well-planned environmental safeguards.
A detailed presentation was made by CEO, NITI Aayog highlighting the current status of planned projects being implemented for islanders’ benefits. The status of implementation of decisions taken in the last meeting was also highlighted in the presentation.
The Union Home Minister Shri Rajnath Singh expressed satisfaction at the progress made since its last meeting held on June 30, 2018 when directions were given to focus on creation of recreational facilities along-with tourism infrastructure; implementation of renewable energy projects; incentives for Micro, Small and Medium Enterprises (MSMEs); development of a film city in an island etc.
Key infrastructure projects such as operationalization of Diglipur airport for civilian aircraft and construction of a new airport in Minicoy Island have been accorded high priority by the Government. Four islands (Swaraj Dweep, Shaheed Dweep, Hutbay and Long) in Andaman & Nicobar and three islands (Kavaratti, Agatti and Minicoy) in Lakshadweep have been identified for seaplane operation. CRZ clearance has been accorded for ‘Middle Strait Bridge’ on Andaman Trunk Road. All these measures will improve inter-island connectivity significantly.
Digital connectivity will improve substantially in the islands with augmentation of satellite bandwidth and laying of optical fibre cable. Better communication services will facilitate setting up of Information Technology based and other Micro, Small and Medium Enterprises (MSME) in the islands.
In order to sustainably utilize the potential of Tuna Fish, ten deep-sea modern fishing vessels are being procured by Lakshadweep administration from Cochin Shipyard Limited. Export of sea food and coconut products is being encouraged to generate more employment opportunities in the islands.
Shri Rajnath Singh called upon all concerned to expedite implementation of ongoing projects which have been planned to create additional jobs for the islanders and improve inter-island connectivity. He directed that adequate care should also be taken for maintaining a clean, green and healthy environment in the islands. Home Minister appreciated collective efforts being made by all the Ministries for holistic and sustainable development of islands.
8-Nov-2017: Union Home minister chairs second meeting of Island Development Agency
The Union Home Minister Shri Rajnath Singh chaired the second meeting of Island Development Agency (IDA). The Island Development Agency reviewed the concept development plans and detailed master plans for holistic development of 09 islands (four in A&N Islands i.e. Smith, Ross, Long, Avis) and (five in Lakshadweep i.e. Minicoy, Bangaram, Thinnakara, Cheriyam, Suheli). The project being steered by NITI Aayog aims at promoting and implementing development based on sustainable approach to building a thriving maritime economy of the project islands.
Site development potential reports have clearly mapped and delineated environmentally sensitive zones in the project islands and considering the unique maritime and territorial bio-diversity of the islands, enhanced connectivity has been recommended as one of the key priorities. Accordingly, it was decided that the Naval air station at Shibpur near Diglipur in northern Andaman & Nicobar Islands would be co-used as Joint User Airport.
During the meeting, it was also decided to develop a PPP package including an airport (Joint User Airport) at Minicoy Island, to unlock the tourism potential. It was agreed to promote tuna fishing industry for improving livelihoods in Lakshadweep. Union Home Minister directed all concerned to expedite implementation of ongoing key infrastructure projects in the islands and develop community based tourism in consultation with local stakeholders.
NITI Aayog was also asked to drive the formulation of PPP projects and proposed detailed guidelines to boost private sector participation.
The IDA was set up on June 01, 2017 following the Prime Minister’s review meeting for the holistic development of islands.
24-Jul-2017: First meeting of Islands Development Agency (IDA)
The Union Home Minister chaired the first meeting of the newly constituted Islands Development Agency (IDA). The IDA was set up on June 01, 2017 following the Prime Minister’s review meeting for the development of islands.
The Union Home Minister presented the vision for developing India’s maritime economy while preserving the natural eco-system and addressing the security concerns. He emphasized upon the need for sustainable development of Islands with people’s participation.
The CEO, NITI Aayog made a detailed presentation on the current status and the way forward for holistic development of identified islands. He informed that Concept Development Plans and Detailed Master Plans are being prepared for identified islands with principles of sustainability, people’s participation, eco-system preservation and determination of carrying capacity as the guiding principles. Such an exercise is being taken up for the first time in the country.
Admiral D.K. Joshi, former Navy Chief and Vice Chairman of IDA suggested taking up suitable interventions for sustainable implementation of planned projects.
During the meeting, the progress being made for the formulation of integrated master plans and other matters concerning the islands development were reviewed. It was also decided that Lt. Governor of Andaman & Nicobar Islands and Administrator of Lakshadweep Islands will be included as members of IDA.
After detailed consultations with key stakeholders, 10 islands namely Smith, Ross, Aves, Long and Little Andaman in Andaman & Nicobar and Minicoy, Bangaram, Suheli, Cherium and Tinnakara in Lakshadweep have been identified for holistic development in the first phase. With this meeting, the efforts for holistic development of Islands of India received a major boost.
Other Members of the IDA including Cabinet Secretary, Home Secretary, Secretary (Environment, Forests and Climate Change), Secretary (Tourism) and Secretary (Tribal Welfare) also participated in the meeting.