The National Anti-Profiteering Authority (NAA) has found Mumbai-based company Abbott Healthcare guilty of not passing on the benefit of GST rate reduction to the tune of Rs 96.59 lakh to consumers and asked to deposit the amount in the consumer welfare fund.
A complaint against the said company pointed out that the tax rate applicable to the product, “Melaglow Rich (Niainamide) Depigmentation & Glow Restoration Cream” was 30.06 percent in the pre-GST regime. It was said that the tax rate was reduced to 28 percent after the GST rollout and further to 18 percent with effect from November 15, 2017.
The complaint alleged that the even after the rate cuts, during the said periods, the base price of the product was increased from Rs 202.06 to Rs 230.90 per unit which resulted in an increase of the selling price and denial of passing the benefit of tax reduction to the customers.
After the investigation, the Directorate General of Anti Profiteering had come to a conclusion the company had not passed on the GST rate cut benefit while selling the product.
“Thus the total amount the benefit of which was denied to the recipients by Respondent No 1 (Abbott Healthcare Pvt Ltd) or the profiteered amount during the period w.e.f July 1, 2017 to July 31, 2018, comes to Rs 96,59,716.26,” the National Anti-Profiteering Authority (NAA) said in its order.
The NAA directed the company to deposit the profiteered amount to the Consumer Welfare Fund of the Centre and states, along with 18 percent interest.To Read the full text of the Order CLICK HERE