The government plans to use the anti-profiteering clause under GST to focus largely on businesses that are prone to formation of price cartels -such as cement and steel -in addition to duopolies and monopolies to crack down on companies that do not pass on the benefit of lower prices to consumers.
Sources told TOI that while prices across industries will be under watch, it was not possible for the government to keep tabs on all segments given the large number of goods and services. At the same time, it will take up cases that are flagged by consumers or other agencies but will largely confine itself to certain businesses.
The anti-profiteering clause -which was criticised by states such as West Bengal -was built into the GST law to ensure that the price gains accruing due to an end of “tax on tax”, or cascading effect, are passed on to consumers. There was a spike in prices of several products in Malaysia after it rolled out GST, prompting the govern ment to insert the clause.
via GST: GST’s anti-profiteering clause to check monopolies, cartels – The Economic Times