NEW DELHI: The GST profiteering investigation arm has found leading FMCG company P&G India responsible of now not passing on GST fee lower advantages to the track of about Rs 250 crore through commensurate reduction in prices.
Based on a grievance filed before the standing committee, the Directorate General of Anti-profiteering (DGAP) investigated the books of accounts of P&G India pre and publish November 15, 2017, and concluded that the shopper items manufacturer has now not decreased prices of certain of its merchandise in spite of lower in GST fee to 18 according to cent from 28 according to cent.
"The DGAP report has concluded profiteering worth Rs 250 crore by P&G. The National Anti-profiteering Authority (NAA) will pass a final order on the quantum of profiteering after hearing the company's views," an reputable mentioned.
P&G India is the manufacturer of washing powder manufacturers Ariel and Tide; shampoo manufacturers Heads & Shoulders and Pantene; cosmetics emblem Olay, and shaving and dental hygiene manufacturers Gillette and Oral-B. It also manufactures merchandise below the brand name Ambi Pur, Pampers, Vicks and sanitary napkin Whisper.
When contacted, a P&G spokesperson mentioned "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".
The Goods and Services Tax charges on about 178 merchandise have been lower through the GST Council with effect from November 15, 2017. The fee on washing powder, shampoo, cosmetics and dental hygiene have been slashed to 18 according to cent from the easiest slab of 28 according to cent.
As according to GST anti-profiteering rules, corporations have to cross on the benefit of reduction of taxes to consumers by the use of commensurate lower in product prices. However, there were court cases from consumers that the corporations have higher the base value of products after which charged the lower GST fee, thereby maintaining the MRP of products the same in pre and publish tax fee lower.
P&G mentioned it'll proceed to cooperate with the authorities and supply clarifications. "We hope that the concerned authorities will appreciate the procedure followed to pass on the GST benefit and will take a just view of the matter".
Once a profiteering grievance is won towards an organization, the DGAP has the powers to appear into the books of accounts and spot if the advantages of tax fee cuts had been handed on in other merchandise manufactured through the company as smartly.
After studying the paperwork, the DGAP gives its report back to the National Anti-profiteering Authority for further action.
If the NAA finds a company responsible of profiteering then the amount profiteered has to be refunded to consumers through the company. In case the place the patrons cannot be known, the amount has to be deposited into the shopper welfare fund of the Centre and states.
In December 2018, the NAA had found any other FMCG company HUL responsible of profiteering of Rs 535 crore through now not passing on tax fee lower advantages to consumers on its range of products.
Based on a grievance filed before the standing committee, the Directorate General of Anti-profiteering (DGAP) investigated the books of accounts of P&G India pre and publish November 15, 2017, and concluded that the shopper items manufacturer has now not decreased prices of certain of its merchandise in spite of lower in GST fee to 18 according to cent from 28 according to cent.
"The DGAP report has concluded profiteering worth Rs 250 crore by P&G. The National Anti-profiteering Authority (NAA) will pass a final order on the quantum of profiteering after hearing the company's views," an reputable mentioned.
P&G India is the manufacturer of washing powder manufacturers Ariel and Tide; shampoo manufacturers Heads & Shoulders and Pantene; cosmetics emblem Olay, and shaving and dental hygiene manufacturers Gillette and Oral-B. It also manufactures merchandise below the brand name Ambi Pur, Pampers, Vicks and sanitary napkin Whisper.
When contacted, a P&G spokesperson mentioned "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".
The Goods and Services Tax charges on about 178 merchandise have been lower through the GST Council with effect from November 15, 2017. The fee on washing powder, shampoo, cosmetics and dental hygiene have been slashed to 18 according to cent from the easiest slab of 28 according to cent.
As according to GST anti-profiteering rules, corporations have to cross on the benefit of reduction of taxes to consumers by the use of commensurate lower in product prices. However, there were court cases from consumers that the corporations have higher the base value of products after which charged the lower GST fee, thereby maintaining the MRP of products the same in pre and publish tax fee lower.
P&G mentioned it'll proceed to cooperate with the authorities and supply clarifications. "We hope that the concerned authorities will appreciate the procedure followed to pass on the GST benefit and will take a just view of the matter".
Once a profiteering grievance is won towards an organization, the DGAP has the powers to appear into the books of accounts and spot if the advantages of tax fee cuts had been handed on in other merchandise manufactured through the company as smartly.
After studying the paperwork, the DGAP gives its report back to the National Anti-profiteering Authority for further action.
If the NAA finds a company responsible of profiteering then the amount profiteered has to be refunded to consumers through the company. In case the place the patrons cannot be known, the amount has to be deposited into the shopper welfare fund of the Centre and states.
In December 2018, the NAA had found any other FMCG company HUL responsible of profiteering of Rs 535 crore through now not passing on tax fee lower advantages to consumers on its range of products.
P&G India found guilty of profiteering Rs 250cr
![P&G India found guilty of profiteering Rs 250cr]()
Reviewed by Kailash
on
April 23, 2019
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