Question

Q. What is Anti-Profiteering in the case of GST?

• A. It is a mechanism to prevent companies from making excessive profits with the introduction of GST.
• B. It is a mechanism to check monopolistic practices in the market and create an environment of competition.
• C. It is a mechanism to ensure that tax authorities do not harass taxpayers.
• D. None of the above

Answer 1

The correct option is A It is a mechanism to prevent companies from making excessive profits with the introduction of GST.

Explanation:

Anti-profiteering under GST:

• It is a mechanism to prevent companies from making excessive profits with the introduction of GST.
• Under anti-profiteering provisions, it is illegal for a business to not pass on benefits of GST rate benefits to the end consumer and thereby indulging in illegal profiteering.
• National Anti Profiteering Authority (NAA) is responsible for enforcing Anti-profiteering.