GST authority finds HUL guilty of profiteering ₹383 crore: The GST anti-profiting authority has found guilty of not allowing Hindustan Unilever Limited (HUL) to pass on the rate cut benefits of consumers to Rs 383 crore.
GST authority finds HUL guilty of profiteering ₹383 crore
In the complaint before the National Anti-Profiteering Authority (NAA), it has been stated that although the rate of goods and services tax was cut from 28% to 18% on a large number of products, the consumer goods company has given maximum retail price Did not reduce. The NAA passed the order and said that the HUL has been denied the benefits of its customers by 383.35 crores “.
While passing the order, The National Anti-Profiteering Authority (NAA) said that the benefit of HUL to its customers was “Profit from the profit of Rs 383.35 crore”.
According to the GST rules, the company has to deposit 50% of the profits or Rs 191.68 crores in the Central Consumers Welfare Fund (CWF), while the balance is to be deposited in the CWF of the respective states, where the company has to submit its products Sold.
“Since the Defendant (HUL) has already deposited a sum of Rs 160.23 crore in the Central CWF, it has been instructed to deposit the balance of Rs. 315.45 crore in the Central CWF and the balance of` 191.68 crores in the CWF of the States. , NAA said.
The Authority directed HUL to reduce the prices of its products through a low reduction in view of low tax rates and ITC benefits.
“He (HUL) has neglected the obligation to pass the benefit of the reduction in the GST rate, instead he did not reduce the old MRP in proportion to the proportion of the tax deduction. Increasing the amount of GST rate was equal to the increase in the base prices, deliberately … …, “said in the order of the NAA.
The current investigation was conducted by the Directorate’s Anti-Profiteering between November 15, 2017, and 28 February 2018.
The NAA directed DGAP to investigate further to ascertain whether the defendant has gone through the benefits of tax deduction in relation to all the products sold by him and presenting a report, defining the quantum of profits.