NEW DELHI: Addressing fears that an “anti-profiteering” clause in the draft goods and services tax (GST) law may spell the return of inspector raj, the Centre stressed that the provision is an enabling element and will be invoked only in the event of significant violations.
“The clause is an enabling provision in case it is noticed that intended benefits of a GST law are not being passed on to consumers. The government has no plans to set up an inspection machinery and no punishment has been prescribed,” revenue secretary Hasmukh Adhia told TOI .
The provision was made a part of the draft GST laws released on Saturday to ensure that the Centre has an option in dealing with traders who do not pass on to consumers any reductions under the tax reform measures. This is seen as a step to protect consumers against any price spike.