National Anti-Profiteering Authority (NAA)

Subject – Economy

Context – Anti-profiteering body gets 1-year extension

Concept –

The GST Council has decided to extend the tenure of the National Anti-Profiteering Authority (NAA) for one more year while an alternative will be explored in the Competition Commission of India (CCI).
This is a second extension for the Authority whose term will now continue till November 30, 2022

About NAA –

NAA comes under the Finance Ministry and was established under Section 171 of CGST Act.
It started working with effect from December 1, 2017.
It was intended as a transitional arrangement with a specific time limit in view of the sudden changes in tax levels due to the introduction of GST, which was followed by periodic rationalisation.
The law empowers NAA to determine whether reduction in rate of input tax credit (ITC) has been passed on to the consumers or not, by lowering prices. If not, then the Authority may ask for reduction of prices, levy penalty and in extreme cases can even order cancellation of registration.
NAA consists of a chairman and four technical members. The authority needs a quorum of Chairman and three technical members.
The orders of the NAA can be appealed against only in the high court.

About Competition Commission of India (CCI)

CCI is part of the Corporate Affairs Ministry.
It has been established through the Competition Act 2002.
It is mandated to eliminate practices which have an adverse effect on competition, promote and sustain competition, protect the consumers’ interests and ensure freedom of trade.