Not surprisingly, only two (Malaysia and Australia) of the “many countries” that saw “marked increase in the inflation” after GST, responded with “anti-profiteering laws”. Interestingly, some of the initial targets under the GST “anti-profiteering” mechanism include a McDonald’s franchisee, a Honda dealer and the retailer Lifestyle. There can be several situations in which the GST “anti-profiteering” mechanism can fall foul of this fundamental right. In 2012, the Delhi high court summarized the law really well in the context of regulating natural gas prices: “Prices are generally governed/regulated by market forces. The GST “anti-profiteering” mechanism aims to regulate prices of all goods and services irrespective of circumstances.

Source: Mint February 26, 2018 18:45 UTC