Question

Q. With reference to National Anti-Profiteering Authority, consider the following statements:

Which of the above given statements is/are incorrect?

• A.
  1 and 2 only
• B.
  3 only
• C.
  2 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is A

1 and 2 only
Explanation:

Statement 1 is incorrect: The National Anti-Profiteering Authority (NAA) is a statutory body. It is constituted under Section 171 of the Central Goods and Services Tax Act, 2017.National Anti-profiteering Authority (NAA) came into existence ( just after the rollout of GST) for two years to deal with complaints by consumers against companies for not passing on GST rate cut benefits.

Statement 2 is incorrect: The authority will have 5 members. It will be headed by a current or retired Secretary level officer, plus four technical members that are or were Commissioners of State or Central Tax (or its equivalent).
It will be supported by a Standing Committee (made up of Centre and State officers), plus state level Screening Committees in every state (composed of one officer of the State concerned and one from the Centre). The authority will be in existence for two years (the CEA had recommended a sunset clause of nine months).

Statement 3 is correct: The Authority’s main function is to ensure that traders are not realizing an unfair profit by charging high prices from consumers in the name of GST and to examine and check such profiteering activities and recommend punitive actions including the cancellation of Registration.