How to Plan for Anti-Profiteering Provisions….!
With each passing day, India seems to be marching towards the Goods and Services Tax (GST) slated for introduction from July 1, 2017. There are still several areas of doubt for taxpayers on the overall law and its implementation, and the ‘Anti-Profiteering Provision’ seems to be at the forefront of things. What is the Anti-Profiteering Provision? The Central GST law, as passed by the Parliament, contains an antiprofiteering clause that mandates the manufacturer and others in the supply chain to pass on the benefits arising during the transition phase from current tax regime to GST regime, to the consumers: Globally, Australia is said to be the first country to introduce Anti-Profiteering Provision during GST introduction in the year 2000, followed by Malaysia in the year 2015. Though there are no empirical studies to prove its benefits, the Government appears to be inclined to experiment with these provisions in Indi...