The National Anti-Profiteering Authority (NAA) has imposed a fine of Rs 241.5 crore on Procter & Gamble Home Products, Procter & Gamble Hygiene & Health Care Ltd. and Gillette India Ltd. for not passing on benefits to its customers after the reduction of goods and service tax (GST) rates on its products from 28 per cent to 18 per cent.
“It is evident from the narration of facts that the respondents have denied benefit of rate reduction to the buyers of their SKUs in contravention of the provisions of Section 171 (1) of the Central GST Act, 2017 and they have thus resorted to profiteering,” said Chairman of NAA, BN Sharma in an order passed on November 23.
Procter & Gamble (P&G) said that it had passed on benefits of rate reduction to its consumers and it will also assess all the legal options against the order. It also said that the industry has been consistently requesting the authorities for a set of rules and regulations in order to eliminate the ambiguity and complexity.