Latest News | NAA Finds Whirlpool of India Guilty of Denying GST Rate Cut Benefit Worth Rs 4.07 Lakh
Get latest articles and stories on Latest News at LatestLY. The National Anti Profiteering Authority (NAA)has found consumer durable firm Whirlpool of India guilty of not passing on GST rate cut benefit worth over Rs 4.07 lakh to its refrigerator buyers.
New Delhi, Jun 23 (PTI) The National Anti Profiteering Authority (NAA)has found consumer durable firm Whirlpool of India guilty of not passing on GST rate cut benefit worth over Rs 4.07 lakh to its refrigerator buyers.
The Director General of Anti Profiteering (DGAP) investigated a compliant filed alleging profiteering on supply of 'Refrigerator Whirlpool FP313D Protton Roy Mirror' by not passing on the benefit of reduction in GST rates with effect from July 1, 2017, by way of commensurate reduction in price.
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The DGAP investigation found that Whirlpool of India had increased the basic price of the product when the rate of GST was reduced to 28 per cent with effect from July 1, 2017. Pre-GST the tax rate was different in various states depending on state value added tax (VAT) rate.
The NAA after examining the DGAP report said there was no reason for the respondent to increase his basic price exactly equal to the rate of tax reduction with effect from July 1, 2017.
"Such a coincidence is incomprehensible, wrong and unheard of which shows that the respondent has deliberately tried to pocket the benefit of tax reduction to enrich himself at the expense of the vulnerable customers," the NAA said in its order.
On the basis of the pre and post tax rate reduction and the details of the outward taxable supplies of the product made during the period from July 1, 2017 to August 31, 2018, the profiteered amount has been rightly computed as Rs 4,07,451, the NAA said.
The authority also directed Whirlpool of India to deposit the profiteered amount, along with 18 per cent interest, in consumer welfare funds within three months.
It also asked the company to reduce the price of the product so that the benefit of tax reduction is passed on to customers.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)