Goods and Services Tax (GST)

National Anti-Profiteering Authority (NAA)


From UPSC perspective, the following things are important :

Prelims level: National Anti-Profiteering Authority (NAA)

Mains level: Not Much

The National Anti-Profiteering Authority (NAA) 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.

What is National Anti-Profiteering Authority (NAA)?

  • The NAA has been constituted under Section 171 of the Central GST Act, 2017 to ensure that the reduction in the rate of tax or the benefit of the input tax credit is passed on to the recipient by way of commensurate reduction in prices.
  • The decision about the formation of the NAA came in the background of a rate reduction of a large number of items by the GST Council in its 22ndmeeting at Guwahati.
  • At the meeting, the Council reduced rates of more than 200 items including goods and services.
  • This has made a tremendous price reduction effect and the consumers will be benefited only if the traders are making the quick reduction of the prices of respective items.
  • There was a concern that traders are reluctant to make price cuts so that they can make a profit.

Answer this PYQ in the comment box:

Q. Consider the following items:

  1. Cereal grains hulled
  2. Chicken eggs cooked
  3. Fish processed and canned
  4. Newspapers containing advertising material

Which of the above items is/are exempt under GST (Goods and Services Tax)?

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

What is profiteering?

  • Profiteering means unfair profit realized by traders by manipulating prices, tax rate adjustment etc.
  • In the context of the newly launched GST, profiteering means that traders are not reducing the prices of the commodities when the GST Council reduces the tax rates of commodities and services.
  • Conventionally, several traders will have a strong tendency to quickly increase the price of a commodity whose tax rate has been increased.
  • But on the opposite side, they may delay the price reduction of a commodity whose tax rate has been cut by the government.
  • A delayed or postponed price reduction helps business firms to make a higher profits. The losers here are the consumers.

Functioning of NAA

  • The Authority’s main function is to ensure that traders are not realizing unfair profit by charging high prices from the consumers in the name of GST.
  • Traders may charge high prices from the consumers by naming the GST factor.
  • Similarly, they may not make quick and corresponding price reductions when the GST Council makes a tax cut. All these constitute profiteering.
  • The responsibility of the NAA is to examine and check such profiteering activities and recommend punitive actions including the cancellation of licenses.

Steps were taken by the NAA to ensure that customers get the full benefit of tax cuts:

  • Holding regular meetings with the Zonal Screening Committees and the Chief Commissioners of Central Tax to stress upon consumer awareness programs;
  • Launching a helpline to resolve the queries of citizens regarding registration of complaints against profiteering.
  • Receiving complaints through email and the NAA portal.
  • Working with consumer welfare organizations in order to facilitate outreach activities.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Notify of
1 Comment
Newest Most Voted
Inline Feedbacks
View all comments
User Avatar
2 years ago



Join us across Social Media platforms.

💥Mentorship New Batch Launch
💥Mentorship New Batch Launch