NAA receives increase in complaints over GST rate cut benefits for cosmetics, fragrances

By

Isabelle Crossley

Published
Nov 27, 2018

The National Anti- profiteering Authority (NAA) has reported over 300 complaints concerning businesses failing to pass on Goods and Services Tax (GST) rate cut benefits including in the cosmetics, textiles, and fragrance sectors.

The NAA and its state-level screening panels have received over 300 complaints, according to Mint, that fast moving consumer goods (FMCG) businesses are overcharging customers. The complaints allege that the businesses are not passing on the benefits of tax rate reductions that were made under the GST.

Complaints have covered product categories including cosmetics, Khadi items, fragrances, and haircare, according to Mint’s sources. A recent complaint accused FabIndia of not passing on GST rate cut benefits to customers for two products including a “Bathing Bar”. However, the brand was recently cleared of these charges by the NAA showing that not all complaints prove true.

The large number of complaints, whether they be true of false, shows that there is confusion in the FMCG sector around the GST and its rates. The NAA is therefore expected to come out with clear guidelines over the coming months, according to Mint’s sources. Complaints are investigated by the Directorate General of Anti- profiteering and the NAA acts as judge with three months to give a ruling.

The NAA was founded in November 2017 after the GST was brought in in July the same year to replace the previous Value Added Tax (VAT) system. Consumer complaints can be submitted to the NAA through its website.