About the National Anti-Profiteering Authority (NAA)
- Soon after the GST was rolled out from 1 July 2017, the government had approved setting up of the NAA for two years.
- NAA is a statutory body constituted under the Central Goods and Services Tax Act, 2017 to check the unfair profit-making activities by the trading community.
- The Authority’s core function is to ensure that the benefits of the reduction in GST rates on goods or services made by the GST Council is passed on to the ultimate consumers by way of a reduction in prices by traders.
- NAA examines and checks such profiteering activities and recommends punitive actions including cancellation of Registration.
- In 2019, the GST Council has extended the tenure of the NAA by two years.
Why in News ?
- The National Anti-Profiteering Authority has directed GST officials across the country to ensure that the tax rate cuts notified on some COVID-19-related essentials are passed on to consumers.
- At its last meeting on June 12, the GST Council had waived the indirect tax levied on two critical drugs, Tocilizumab and Amphotericin B, and reset the tax rate to 5% on 14 COVID-19 essentials. On June 14, the Finance Ministry had notified the revised rates, which are applicable till September 30.