Fund For Profiteering Recovery
The GST Council will also discuss the anti-profiteering measure in its next meeting on Sunday, including the contours of an agency that will be tasked with its implementation.
According to another official in the finance ministry, the aim is to check profiteering based on the complaints it receives. If an entity is found not passing on the benefits of tax cuts to consumers, the profiteered amount will be calculated based on estimates available, and will be deposited in a consumer welfare fund as the amount cannot be returned to consumers, the official said. It’s still at ideation stage, and, if finalised, will need GST Council’s approval.
One such fund, set up by the department of revenue in the finance ministry, is operated by the ministry of consumer affairs, food and public distribution.
Whether a new fund will be created or the existing one will be used is yet to be decided.