The Council will also take stock of post-GST-implementation scenario in the country.
The GST Council will meet on August 5 to finalise a mechanism to operationalise anti-profiteering clause which seeks to pass on the benefits of reduction in taxes to consumers, Finance Minister Arun Jaitley told the Lok Sabha on Tuesday.
At its next meeting, the GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, will also take stock of post-GST-implementation scenario in the country.
A PTI report said that the anti-profiteering law simply states that the businesses have to pass on the benefits arising out of lower taxes to the consumer. As per Clause 171 of GST Act, it is mandatory to pass on the benefit due to reduction in rate of tax or from input tax credit to the consumer by way of commensurate reduction in prices.
Replying to a discussion on Supplementary Demands for Grants, Jaitley said: "What if input tax benefit is not transferred to consumers?...We are meeting a few days from now...In a short while, we are going to finalise the entire mechanism as far as anti-profiteering is concerned.
"All you need is to make a few examples and then everybody will fall in line. If there is benefit of the input credit then cost correspondingly must decline," he was quoted as saying.