Johnson & Johnson India Fined Rs 230.4 Crore For Profiteering From Cut in GST Rates
In an order issued on Monday by National Anti-Profiteering Authority, Johnson and Johnson was asked to pay back the amount within a period of three months.
Image for representation.
New Delhi: The National Anti-Profiteering Authority (NAA) has held the Indian operations of the multinational FMCG firm Johnson & Johnson profiteered by Rs 230.4 crore as it failed to slash prices despite being exempted from the goods and services tax on some of its products, according to a Livemint report.
In an order issued on Monday by the NAA chairman BN Sharma, Johnson and Johnson was asked to pay back the amount as a penalty within 3 months. The Rs 230.4 crore penalty will have to be deposited in a consumer welfare fund along with the interest (calculated at 18% per annum).
“The DGAP concluded that the amount of net higher sales realization due to an increase in the base prices of the impacted products despite the reduction of GST rate from 28% to 18% or in other words, the profiteered amount, came to ₹230.4 crore," a report in the Livemint quoted the order.
According to the CGST Act, companies can raise prices only after passing the benefit of a cut in GST to consumers. The GST Council had in 2017 announced one of its biggest round of tax rate cuts as it moved 178 items from the 28% slab to the 18% slab.
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