Discuss the composition and functions of National Anti-profiteering Authority (NAA).

The National Anti-Profiteering Authority is a five member committee which consists of:

• Chairman-he holds or has held a post equivalent in rank to a Secretary to the Government of India.
• Four technical members-they are or must have been Commissioners of state tax or central tax or have held equivalent posts under existing laws.
• Secretary to the Authority-The Additional Director of Safeguards under the CBEC is to hold this post.

The functions of the Authority are as follows. Firstly, it can decide the methodology and procedure for deciding whether the reduction in tax rates or the benefits of input tax credit have been passed to the consumers through an equivalent reduction in prices. Secondly, it can order to reduce prices, return the benefit that has not been passed on to the recipient, impose penalty or cancel registration. Thirdly, it can conduct investigation through the Director General of Safeguards for detecting undue profiteering.

Topics: GS-III: Indian Economy Issues Relating to Planning