P&G Found Guilty Of Profiteering Rs 250 Cr By Not Passing GST Benefits To Customers
The Logical Indian Crew India
April 25th, 2019 / 12:48 PM
Image Credit: Imgix
The Directorate General of Anti -profiteering ( GST profiteering investigation body) has found that a major Fast-Moving Consumer Goods, Procter & Gamble (P&G) India has profiteered an amount of Rs 250 crore by not passing GST benefits to its consumers, reported Economic Times. A DGAP official said that the investigation into the entire range of products sold by the company found anti-pioneering of about Rs 250 crore. The investigative body has submitted its findings to the National Anti-profiteering Authority (NAA). Now NAA will look into the matter and pass a fitting order. The maker of easily found products such as Tide, Pantene, and Head & Shoulder might face a penalty if the authority agrees with the DGAP report. The company can even be directed to reduce prices and refund benefit availed to consumers.
P&G denies foul play
A P&G spokesperson responded back to the allegations and said, “As a responsible corporate, P&G has always been committed to passing the net benefit of GST rate reduction to the consumers. We have passed the net benefit and communicated the same via advertising in mass media to help increase awareness with the consumers, shoppers and retailers.” He further said that the company would continue to cooperate with the authorities. He said that the company hopes that the authorities would appreciate the procedure followed to pass on the GST benefit.
This is not the first time that a case related to a company profiteering by not passing GST benefits to its consumers has come to NAA. In January, NAA had held another top consumer products firm Hindustan Unilever guilty of profiteering Rs 462 crore by not passing GST benefits to its consumers. The Delhi high court has stayed the demand until the final determination of the matter in the court. Jubliant Food-Works and Patanjali were also found guilty for not providing GST-cut benefits of Rs 41 crore and Rs 150 crore respectively.
The GST was enforced in November 2017, cutting the tax rates of over 200 products from 28% to 18%.
Written by : Debarghya Sil
Edited by : Shraddha Goled