NAA: GST authority finds P&G, Gillette guilty of profiteering

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The Goods and Services Tax (GST) anti-profiteering watchdog, National Anti-profiteering Authority (NAA), said on Wednesday said Procter & Gamble (P&G) and Gillette India has allegedly profiteered over 241 crore and did not pass on the benefit of a tax reduction in November, 2017.

An NAA order said that the confirmed amount of tax benefit that the companies P&G Home Products, P&G Hygeine and Health Care and Gillette India not passed on to consumers was 181.51 crore, 2 crore and 57.99 crore, respectively.

The quasi-judicial body has asked the companies to reduce the price of the products and deposit half of the profiteered amount to the central consumer welfare fund and rest to the state, along with an interest. The profiteered amount has to be deposited within three months from the date of passing of the order.

P&G spokesperson said the company will review the order and assess all possible legal options.

“As a responsible corporate, P&G has entirely passed on the net commensurate benefit under GST to the recipients. In addition, we communicated the same via advertising in mass media to help increase awareness with the consumers, shoppers and retailers. Also, along with the industry, we have been consistently requesting the authorities for a clear set of rules and regulations to eliminate ambiguity and complexity in this area,” the company said.

Under the GST legislation, the government had introduced an anti-profiteering clause to ensure that ‘commensurate benefits’ of the reduction in GST rate and of input tax credit are passed on to consumers by ‘commensurate reduction in prices’. If not, NAA can, depending on the case, slap penalty, cancel registration of the supplier or return the amount of benefit not passed on, along with an interest.

Source from: https://www.livemint.com/companies/news/gst-authority-finds-p-g-gillette-guilty-of-profiteering-11606325150473.html

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