What is the Full Form of NAA in GST?
The NAA Full Form in GST is National Anti-profiteering Authority. It is a body set up under the Central Goods and Services Tax (CGST) Act, 2017, specifically referred to in Section 171. NAA was mainly working towards guaranteeing that the rate cuts or input tax credits under GST are given to the consumers and do not fall by the wayside to increase the profitability of companies. The whole essence of such an authority lay in stopping businesses from keeping these tax benefits to themselves and rather transferring the reduced prices to the consumers.
Summary of National Anti-Profiteering Authority:
The NAA played an extraordinarily important role under GST. It was acting as an effective check to ensure that the businesses did not pocket the savings derived from a lower GST rate but effectively reduced the selling prices of goods or services.
Functions and Responsibilities of the NAA:
NAA’s responsibility was looking into complaints against businesses not passing the benefit of tax reduction to consumers. The authority had the power to order such businesses to cut prices or give back the extra money realized to consumers. These funds were to be returned directly to the consumers, and where direct return could not be finalized, they were to be remitted to the Consumer Welfare Fund. The NAA had the power to fine or cancel even the GST registration of the businesses if they were found non-compliant.