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ITC, Patanjali under scanner for not passing on GST benefits to customers

GST rules mandate businesses to pass on the benefits from lower tax incidence, arising from rate reduction and/or input tax credit, to the consumer

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Dilasha SethArnab Dutta New Delhi
Even as its term is nearing an end, the country’s profiteering watchdog has widened probe against fast-moving consumer goods (FMCG) and consumer durables companies for not passing on reduced goods and services tax (GST) rate benefit to consumers in a timely manner. Sources said ITC and Patanjali Ayurveda are also being investigated apart from the earlier known names of Procter & Gamble (P&G), Johnson & Johnson (J&J), and Samsung, among others. Most of the firms have denied all such charges.

GST rules mandate businesses to pass on the benefits from lower tax incidence, arising from rate reduction and/or input tax credit,