Exploring the National Anti-Profiteering Authority (NAA): Powers and Complaint Process

The National Anti-Profiteering Authority (NAA) was established as per Section 171 of the Central Goods and Services Tax (CGST) Act, 2017. Its main purpose is to ensure that consumers receive the benefits of reduced GST rates or increased input tax credits through corresponding price reductions. The central government created the NAA to scrutinize whether registered businesses are passing on tax benefits to end-users, thereby safeguarding consumers from arbitrary price hikes under the guise of GST implementation.

Organizational Structure

The National Anti-Profiteering Authority is composed of a five-member committee. This includes a Chairman, holding a rank equivalent to a government secretary, and four technical members who are current or former commissioners from State or Central tax departments. The Secretary to the NAA is the Additional Director General of Safeguards, operating under the Central Board of Indirect Taxes and Customs (CBIC).

Term of Appointment

The initial term for the National Anti-Profiteering Authority committee is two years. The GST Council has the option to extend this tenure if it deems the Authority's continued existence necessary.

Authority's Core Objective

The primary goal of the National Anti-Profiteering Authority is to guarantee that the advantages of tax reductions or lower rates under the new GST framework are transferred to the end consumers. This involves verifying that any decrease in the tax rate on goods or services supplies results in a proportionate reduction in prices for the final recipient. Furthermore, the NAA is responsible for identifying registered individuals or entities who have failed to pass on the benefit of a tax rate reduction via Input Tax Credit (ITC) and holding them accountable.

Membership Composition

Beyond the Chairman, the NAA includes four senior government officials, typically holding the rank of joint secretary, appointed as technical members within the authority.

Unique Powers of the NAA

• The NAA possesses the authority to deregister an entity or business if it does not pass on the advantage of lower GST taxes to its customers.
• Deregistering a business is considered a final and extreme measure against any transgressor.
• The NAA can recommend the restitution of any undue profits a business accrued by not transferring tax reductions and benefits to consumers, along with an 18% interest charge. It also has the discretion to impose additional penalties if deemed necessary.

Anti-Profiteering Framework Under GST

• Complaints are handled based on their jurisdiction; local complaints are initially referred to a state-level screening committee.
• Complaints concerning national-level profiteering incidents are sent directly to the standing committee.
• If a profiteering incident involves a mass-consumption item with implications across India, the complaint may be submitted directly to the Standing Committee.
• Should complaints be found meritorious, the respective committees will forward these cases for deeper investigation to the Directorate General of Safeguards.
• The Directorate General of Safeguards typically requires about three months to finalize its investigation and submit a report to the NAA.
• If the NAA concludes that a company has not passed on GST benefits, it will either instruct the entity to pass on these benefits to consumers or, if beneficiaries cannot be identified, require the company to deposit the amount into a 'consumer welfare fund' within a specified timeframe.

Conclusion

The National Anti-Profiteering Authority acts as a crucial check-and-balance system designed to maintain price stability and ensure ethical business conduct. The NAA's role is to prevent excessive profiteering at the expense of ordinary citizens, who are ultimately the end consumers.

Helpline Information

The National Anti-Profiteering helpline number is 011-21400643. This service assists consumers in registering their complaints.

How to Submit an Online Complaint

Filing a complaint on naa.gov.in involves three straightforward steps:

1. Registration
2. Logging In
3. Complaint Form Submission

Registration Procedure

Users must register by completing the necessary fields in the registration form. Upon successful registration, a verification email will be sent to the provided address (users should also check their spam folder). Clicking the verification link from the NAA will redirect the user to the website's login page.

Logging In to the Portal

Users can access their accounts at any time using their registered email ID and password. The login portal offers five functionalities:

• File a new complaint
• Track existing complaints
• View complaint history
• Edit profile information
• Log out

Filing a New Complaint

Users can complete the complaint form with all required details and upload supporting evidence. Evidence files can be in .jpg, .png, .doc, or .pdf format, with a maximum size of 3 MB. After successfully submitting the complaint, users will receive a unique Complaint ID, which is necessary for tracking the complaint's progress.

Checking Complaint Status

To check the status of a complaint:

Tracking Your Complaint

Log in using your registered email ID and password. The login page provides several options, including filing a new complaint, tracking complaints, viewing complaint history, editing the profile, and logging out. Select “Track-complaint”. Enter the Complaint ID and the captcha to view the complaint's current status.

Reviewing Past Complaints

To review previously filed complaints:

Viewing Previous Submissions

Log in with your registered email ID and password. The login portal includes options for making a new complaint, tracking complaints, viewing complaint history, and editing the profile. Select “View previous complaints” to see a list of all complaints you have filed.