Published
Sep 28, 2018
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Lifestyle ordered to refund "profiteered" amount on Maybelline product

Published
Sep 28, 2018

Lifestyle International Private Limited, the India-based fashion retailer, has been ordered by the National Anti-Profiteering Authority to refund the "profiteered" amount on a Maybelline product it sells after failing to pass on a Goods and Services Tax (GST) reduction.


The National Anti-Profiteering Authority has set a precedent for retailers concerning changing GST regulations - Bellissima Make Up Store- Facebook


The National Anti-Profiteering Authority has set a precedent for retailers concerning changing GST regulations. The authority ordered Lifestyle to refund customers the amount of money it alleges constitutes the benefit of a GST reduction.

The authority stated that Lifestyle did not pass on the benefits of a GST reduction that pertained to Maybelline’s “Fit Me Foundation”, a product it retails, to customers as instructed by the government. The authority also asked the Director General of Anti-Profiteering to launch an in-depth investigation into the business to ascertain whether it had neglected to pass this GST reduction on for other products.

The authority ordered Lifestyle to refund complainants Rs 41 ($0.57), the price reduction for one product that was not passed on to the customer, with 18 percent added interest. Any excess profit deemed to be gained from other products will be collected by the authority and deposited in the consumer fund.

It is a landmark case in showing how Indian authorities aim to deal with anti-profiteering moving forward.

Lifestyle argued that the reason that it did not pass on the GST reduction to consumers is that the price for the product had been externally set by Maybelline, an international brand, and so it was not at liberty to adjust the price. The GST rate on the product was reduced from 28 percent to 18 percent on November 15, 2017. Lifestyle has also stated that there exist a lack of guidelines on how to pass GST reductions on to the consumer and so it should not be held non-compliant.

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