GST fine of Rs 241.5 crore on P&G companies - GST NEW

 

GST fine of Rs 241.5 crore on P&G companies - GST NEW

The National Anti-Profiteering Authority has imposed a fine of Rs 241.5 crore on P&G Home Products, P&G Hygiene and Healthcare and Gillette India Ltd, for now not passing on gain of decreased items and service tax (GST) rates on its merchandise from 28 per cent to 18 per cent.

The excellent used to be determined after the Director General of Anti-Profiteering (DGAP) carried out an investigation into allegations of profiteering at some stage in the duration between November 2017 and September 2018.

“It is evident from the narration of data that the respondents have denied advantage of price discount to the shoppers of their SKUs in contravention of the provisions of Section 171 (1) of the Central GST Act, 2017 and they have as a result resorted to profiteering,” NAA chairman BN Sharma stated in an order surpassed on November 23.

P&G has stated that it had surpassed on advantages of fee discount to consumers, and that it will investigate all criminal selections in opposition to the order.

“As a accountable corporate, P&G has completely exceeded on the internet commensurate advantage below GST to the recipients. In addition, we communicated the equal by means of marketing in mass media to assist expand recognition with the consumers, customers and retailers,”

“We will evaluation the order through NAA, and check all viable criminal options. We are hopeful that our stand will be vindicated,” the spokesperson added.

The makers of marquee merchandise such as Ariel, Tide and Pantene, additionally stated that the enterprise has been persistently soliciting for the authorities for a clear set of regulations and rules to put off ambiguity and complexity.

The NAA has directed the groups to pay the first-rate cut up equally into Central and kingdom purchaser welfare funds, inside three months. A compliance file has been sought inside 4 months.

Importantly, the authority has directed the DGAP to raise out similarly investigation into whether the advantages of price discount have been surpassed on October, 2018 onwards, and compute the profiteered quantity until date.

“… there are life like grounds to trust that respondents have curiously now not exceeded on the gain of tax discount wef October 1, 2018 onwards,” the NAA said. The authority mentioned that claims of the agencies having handed on advantage thru discounts, rate reductions, expand in extent and charging decrease than common prices, have been observed to be wrong.

DGAP has additionally been directed to compute the profiteered quantity on the shares mendacity with distributors and outlets as on November 15, 2017, when the tax charge was once reduced.

However, no penalty has been imposed on the FMCG major. The NAA stated amendments to the Finance Act in January 2020 that barred the levy of penalty retrospectively.

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