Inclusion Of Anti Profiteering Clause In Gst Regime

1. Inclusion Of Anti Profiteering Clause In Gst Regime Anti-profiteering means to stop a person from earning unreasonable profit through sale of goods and services It mandates a manufacturer and others in the supply of chain to pass on the benefits arising out to input credit and lower taxes to consumers at the pain of penalty. The main intention is to protect consumers from inflation after GST implementation. MAIN REASONS FOR ANTI-PROFITEERING CLAUSE There are three main reasons which make this clause necessary is   To set up honest pricing policy, this will help to retain consumers in the GST regime. To examine whether input tax credits or lower tax rates actually result in a commensurate reduction in price. To observe the inflationary trends during the initial stages of GST introduction and to analyze and control its long-term effects.  FEATURES OF ANTI-PROFITEERING CLAUSE  A state wise single registration for a taxpayer for filing returns, paying taxes and to fulfill other compliance requirements. (Most of the compliance requirements would be fulfilled through online) A taxpayer has to file one single return state wise to report all his supplies, whether made within or outside the state or exported out of the country and pay the applicable taxes on them. (CGST, SGST, IGST etc.) A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless it voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course of business except on a few items listed in the law. In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State law, it has been provided that the ITC entitlement arising out of taxes paid under the central law can be cross utilized for payment of taxes under the laws of the states or union territories. Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilized ITC in the GST regime. In order to mitigate any financial hardship being suffered by a taxpayer, commissioner has been empowered to allow payment of taxes in installments. To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.       

2. This Article is About GST Registration for more information please visit our website: efilingportal