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J&J distributor found guilty of profiteering after GST rate cut

Press Trust of India  |  ew Delhi 

The GST anti-authority has found a distributor of (J&J)guilty of not passing on the rate cut benefit of over Rs 5 lakh to consumers.

The case before the National Anti Authority (NAA) states that the distributor had hiked the base price of two -- J&J baby shampoo 100ml and J&J baby powder 200gm -- after the slashed on them to 18 per cent from 28 per cent on November 15, 2017.

The of Anti (DGAP), which investigated the complaint against the said distributor, went through its books of accounts for the period November 15, 2017 to March 31, 2018.

It was found that the base price of the baby shampoo was increased from Rs 57.24 to Rs 62.10 a piece following the November 15 rate cut. Similarly, the base price of the baby powder was increased to Rs 87.67 from Rs 80.82 a piece.

NAA, while asking the distributor to deposit over Rs 5 lakh to consumer welfare fund, directed it to reduce the prices of all the by making commensurate reduction in their rates.

"The respondent (distributor) is directed to deposit the profiteered amount of Rs 5,01,646 along with the interest to be calculated at the rate of 18 per cent from the date when the above amount was collected by him from his customers," said.

also asked DGAP to further investigate the quantum of profiteering made by the distributor from April 1, 2018, and submit its report to the authority.

EY Partner said :"A critical aspect to be noted in this ruling is that the responsibility of compliance with anti-profiteering provision is on the seller of the and a retail selling goods to the end customer cannot shift his accountability of this compliance to the original manufacturer of the goods".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 17:05 IST