Published
Mar 17, 2020
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NAA fines Patanjali for failing to pass on GST rate cut benefits

Published
Mar 17, 2020

The National Anti-Profiteering Authority has directed Ayurvedic fast-moving consumer goods brand Patanjali to pay Rs 75.08 crore ($10.16 million) for failing to pass on goods and service tax rate cuts to the consumer.

Patanjali has been fined for failing to pass on GST rate cut benefits from 2017 - Patanjali

 
The NAA directed Baba Ramdev’s business Patanjali to pay a fee for not passing on GST rate cut benefits to shoppers, ET Bureau reported. The business must pay the fine within three months and the funds will be put in centre and state welfare funds. 
 
The authority stated that Patanjali had failed to pass on GST rate cuts of 28% to 18% and from 18% to 12% on select product categories to the consumer in November 2017. The NAA reported that, instead, Patanjali had raised prices of several products and this affects “voiceless, unorganised and vulnerable” consumers.

“The respondent (Patanjali) has denied the benefit of tax reduction to consumers in contravention of the Central GST Act... therefore a showcause notice be issued directing it to explain why the penalty should not be imposed,” the NAA said in a statement, ET Bureau reported.
 
Following the NAA’s ruling, the Director General Anti-Profiteering has been told to submit a compliance report on the matter within four months.
 
The brand has also recently received criticism for advertising its Giloy Ayurvedic herb treatment as effective against coronavirus. The Advertising Standards Council of India has announced that it will clamp down on any businesses claiming their products fight the virus and will begin to look into consumer complaints.

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