In the current format, the government’s anti-profiteering rules on the goods and services tax (GST) raise more questions than answers. Most importantly, there is no mention whether the mechanism for implementing anti-profiteering measures will be product-based or entity based. The rules only talk about the composition of an anti-profiteering committee and that it has the power to determine the methodology and procedure. Businesses here too are worried whether anti-profiteering would lead to witch-hunting by taxmen. To conclude, the poorly framed anti-profiteering rules indicate that the provision is a pressure tactic being used by the government to boost compliance.

Source: Mint June 21, 2017 02:25 UTC