New Delhi, Dec 23 (IANS): Against the backdrop of the ongoing Goods and Services Tax (GST) Council meet, industry lobby Assocham has asked for removal of the anti-profiteering provision from the model law.

"Associated Chambers of Commerce and Industry of India has suggested removal of a provision in the revised Model GST Law dealing with anti-profiteering since it is open to misuse and subjective interpretation," Assocham said in a statement here on Friday. 

The suggestion was made by the industry chambers in a detailed representation to the Central Board of Excise and Customs (CEBC) and Finance Minister Arun Jaitley.

In the revised Model GST Law, the central government has been given powers to constitute an authority to examine whether input tax credits availed of by any registered taxable person, or the benefit of a reduction in the tax rate, has resulted in a commensurate reduction in the price of the goods or services supplied. 

Also, the authority would have powers to impose penalties where the prices of goods or services supplied are not reduced.

"While the intent of such a proposal cannot be questioned, the industry believes that it will be very difficult to implement and the costs of compliance and administration will significantly outweigh the risks that some businesses will seek to 'profiteer' from the change in indirect tax systems," the statement added.