In a crucial ruling for traders who import and sell in India, the National Anti-profiteering Authority has held a supplier of imported machinery guilty of profiteering for not passing on the benefit of input tax credit due to GST, and also ordered a wider probe into other products sold by the entity.
The authority directed the Director General of Anti-Profiteering to conduct a fresh investigation covering all products supplied by the entity in question — Theco India Pvt Ltd — to unearth and quantify the benefit that it had failed to pass on to customers. It also said that a fresh notice be given asking the importer to explain why penalty should not be imposed, and directed the company to reduce the sale price immediately commensurate to the benefit. “This is the first anti-profiteering ruling covering this aspect. It clearly lays down the guidelines, and if found guilty, leads to further investigation on other products being imported and sold,”