Offer ends in
2020-05-08 09:56:29profitEnglish Anti-profiteering Authority: Duties of NAA %%sep%% %%sitename%%

National Anti – Profiteering Authority

6 min read

Ideally, reduction in GST rate on supply of goods or services or ITC benefit should be passed on to the recipient in the form of reduced prices. However, it was observed world over that when GST was implemented, there was a marked increase in the prices of the commodities. This inflation occurred despite the right to avail input tax credit in the entire supply chain.

The inflation occured because the suppliers did not pass on the benefit to the consumer as they intended to earn illegal profits. So, to keep a check on such illegal practices, the central government constituted National Anti – Profiteering Authority. Such an authority was set up to ensure that any reduction in GST rate on supply of goods or services or ITC availed by the suppliers must result in reduction in prices of goods or services supplied.

In this article, you will learn what is National Anti – Profiteering Authority, constitution of authority, its duties and procedure to file complaint to such an authority.

What is National Anti-profiteering Authority?

National Anti-Profiteering Authority (NAA) is a statutory body constituted by the central government to examine whether the input tax credit avaled buy any registered person or reduction in tax rates have actually resulted in corresponding reduction in prices of goods or services supplied.

Such an authority was established by the government to protect consumers from irrational price increase in the name of GST.

Constitution of National Anti-Profiteering Authority

NAA is a five member committee that consists of the following set of persons holding varied designations:

  • Chairman – who holds or has held a post equal in rank to a secretary to the Government of India.
  • Four Technical Members – who are or have been commissioners of state or central tax or have held an equivalent position
  • Secretary – the Additional Director General of Safeguards under CBIC

It was initially determined that NAA would discontinue after the expiry of two years from the date on which the chairman joins the office. However, the GST council can extend such a tenure if necessary.

Duties of NAA

Following are the duties of NAA are to:

  • ascertain whether reduction in tax rate on supply of goods or services or ITC benefit has been passed on to the recipient through corresponding reduction in prices of goods or services
  • find out the registered person who has not passed on the benefit of the reduction ta rates on goods and services supplied or ITC benefit to the recipient by corresponding reduction in prices
  • command :
    • price reduction
    • returning recipient an mount equal to the amount not passed on via corresponding reduction in prices along with interest at the rate of 18%. The interest shall be charged from the date when the supplier collected higher amount than required till the date of return of such amount or recovery of amount not returned. (Such recovered amount is not returned in case the eligible recipient does not claim the return of the amount or it is challenging to identify such a recipient. The amount thus recovered is deposited in Consumer Welfare Fund.)
    • charge of penalty
    • registration cancellation

Anti-Profiteering Mechanism under GST

To investigate the complaints regarding illegal profiteering in the name of GST, CGST act mandates a three tier structure.

  • State level Screening Committee and Standing Committee

Whenever an interested party files an application that fall under the range of a state, such applications are first examined by the state level screening committee.

Such a committee examines whether the supplier has not passed on reduction in tax rate on goods or services supplied or ITC benefit to the recipient through reduction in prices. On being satisfied, the committee passes the application along with its recommendations to the standing committee.

The standing committee on anti-profiteering is a statutory body comprising of officers of state government or central government nominated by the GST Council.

Thus, the standing committee further refer the matter to the Director General of Safeguards to undertake a detailed investigation.

Provided, the standing committee has evidence that the supplier has not passed on the benefit of reduction in tax rates o goods or services supplied or the ITC benefit to the recipient via corresponding reduction in prices.

  • Directorate General of Anti-Profiteering

The Director General of Safeguards (DGS) conducts investigation and collects evidence from the interested parties important to determine undue profiteering. Furthermore, before beginning the investigation, it issues a notice to the interested parties containing information pertaining to goods or services in respect of which proceedings have been started. Finally, the DGS needs to complete investigation within a period of three months or such extended period not exceeding a further period of three months. Once the investigation gets completed, it needs to submit a report containing findings and other records to NAA.

  • National Anti-Profiteering Authority

NAA shall determine whether a registered person has passed on the benefit or not within a period of three months from the date of receipt of report from DGS. In case, NAA members differ in opinion, the case is settled as per opinion of majority. Finally, where it is established that a registered person has not passed on the benefit, the NAA will carry out its duties as mentioned above.

How to File a Complaint with NAA?

Any consumer not receiving the benefit of reduced prices as a result of ITC benefit or tax rate reduction on supply of goods or services can file a complaint with proper evidences. Such a complaint can be filed in the following ways:

  • Online complaint

To file a complaint online, the consumer must register himself on NAA. Once the registration is complete, an email is sent to the registered email id of the consumer.

Consumer needs to click on the verification link in an email sent by NAA, post which he would be directed to the login page of NAA website. After logging in, the user will see the following options:

  • Make a complaint
  • Track complaint
  • History of complaints
  • Edit the profile
  • Log Out

User needs to click on ‘Make a complaint’ and fill details in the complaint form along with evidence. After completing the complaint filing process, the user will receive complaint ID, which he can use for tracking the complaint.

  • Via email

User can mail the complaint at the following email addresses:

AgenciesEmail IDNature of Complaint
Standing Committeesc.antiprofiteering@gov.inNational level complaints
State Screening Committee level or local complaints
  • By Post

National Anti-profiteering AuthorityNational Anti-profiteering Authority

Dept. of Revenue, Ministry of Finance

6th Floor, Tower One

Jeevan Bharati Building

Connaught Place

New Delhi-110 001.

Directorate General of Anti-ProfiteeringDirectorate General of Anti-profiteering,

Dept. of Revenue, Ministry of Finance

2nd floor,

Bhai Veer Singh Sahitya Sadan,

Bhai Veer Singh Marg,

Gole market, New Delhi -110 001.

Standing CommitteeDirectorate General of Anti-profiteering,

Dept. of Revenue, Ministry of Finance

2nd floor,

Bhai Veer singh sahitya sadan,

Bhai Veer singh marg,

Gole market, New Delhi -110 001.

Reference Material

The state-level screening committee is set up in each state by the state government itself. Such a committee comprises of:

  • an officer of state government – nominated by the commissioner
  • officer of central government – nominated by chief commissioner


Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles