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Explained: Here're the lessons from anti-profiteering order against HUL

The only option that seems to be available for HUL is to challenge this order through a writ petition before an appropriate high court

Hindustan Unilever Limited
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Hindustan Unilever Limited

Sudipta Bhattacharjee
The National Anti-profiteering Authority, the anti-profiteering juggernaut rolls on despite questions around its constitutional validity. It recently held against Hindustan Unilever (HUL), a 98-page long order, which sent shockwaves in the Indian FMCG sector. Interestingly, HUL had deposited around Rs 124 crore to the Consumer Welfare Fund (CWF) on its own, even without any clarity in law on how to calculate ‘commensurate reduction’ as per the GST anti-profiteering provisions (Section 171 of CGST Act).

The investigation against HUL was initiated on the basis of an anonymous complaint (later, joined by others). It alleged ‘profiteering’ of around Rs 535 crore between November