Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Jubilant, Operator of Dominos Pizza Chain in India, Found Guilty of Not Passing Rs 41.42 Crore GST Benefit

Goods and Services Tax (GST) rate on restaurants was cut to 5% without Input Tax Credit (ITC) from 18% with ITC, with effect from November 15, 2017.


Updated:February 4, 2019, 8:56 PM IST
Jubilant, Operator of Dominos Pizza Chain in India, Found Guilty of Not Passing Rs 41.42 Crore GST Benefit
Photo for representational purposes only. (REUTERS)

New Delhi: Jubilant FoodWorks, the operator of Dominos Pizza chain in India, has been found guilty of not passing on GST-cut benefit of Rs 41.42 crore on sale of some pizza products and has been directed to deposit the illegal gains with the government.

The National Anti-Profiteering Authority (NAA) passed the order on an email complaint filed by a customer that Jubilant FoodWorks had not reduced the prices of 'Dominos Stuffed Garlic Bread' and 'Medium Veg Pizza' despite a cut in GST rate from 18% to 5%.

Goods and Services Tax (GST) rate on restaurants was cut to 5% without Input Tax Credit (ITC) from 18% with ITC, with effect from November 15, 2017.

The NAA held that Jubilant FoodWorks has not passed on the benefit of reduction in the rate of tax to its customers during the period November 15, 2017 to May 31, 2018.

It found that quantum of denial of rate cut benefit or profiteered amount illegally earned by Jubilant FoodWorks is over Rs 41.42 crore and asked the company to reduce prices of its products by way of commensurate reduction in taxes.

"The Respondent (Jubilant FoodWorks) is directed to refund to the applicant an amount of Rs 5.65 along with interest @18% from the date of charging the above amount from him till its refund.

"He is further directed to deposit the balance amount of Rs 41,42,97,629.25 in the ratio of 50:50 in the Central and the State Consumer Welfare Funds along with interest @18 % till the same is deposited, within a period of 3 months," the NAA said.

The NAA also asked the Directorate General of Anti-Profiteering (DGAP), which investigated the case, to conduct further investigation post May 31, 2018, to check if the benefit of tax reduction was passed to customers.

"It is clear that the Respondent has resorted to profiteering by charging more price than what he could have charged by issuing wrong tax invoices. He has further acted in conscious disregard of the obligation which was cast upon him by the law, by issuing incorrect invoices in which the base prices were deliberately enhanced more than what he was entitled to increase due to denial of ITC and thus he had denied the benefit of reduction in the rate of tax...," the NAA said.

The authority has also issued a show cause notice to Jubilant FoodWorks to explain why penalty should not be imposed on the company. Jubilant FoodWorks operates quick service restaurant under the brand name 'Dominos Pizza' from 1,128 outlets across 31 sates and Union Territories.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Debdeep Mukherjee
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
HDFC 2,048.45 3.74
HDFC Bank 1,185.90 7.71
Reliance 1,251.00 6.10
Maruti Suzuki 6,594.00 10.42
ICICI Bank 417.65 8.03
Company Price Change %Gain
Astral Poly Tec 1,146.25 -0.60
SBI Life Insura 822.00 2.49
Zee Entertain 294.45 -4.65
HDFC 2,047.15 3.67
Maruti Suzuki 6,591.80 11.00
Top Gainers
Company Price Change %Gain
Eicher Motors 17,891.30 13.58
UltraTechCement 4,300.10 11.22
Maruti Suzuki 6,594.00 10.42
IndusInd Bank 1,415.80 10.42
Bajaj Finance 3,673.00 9.25
Company Price Change %Gain
Maruti Suzuki 6,591.80 11.00
IndusInd Bank 1,415.00 10.38
Bajaj Finance 3,676.00 9.31
SBI 297.90 8.70
Tata Steel 376.60 9.18
Top Losers
Company Price Change %Gain
Zee Entertain 294.35 -4.69
NTPC 119.30 -1.97
TCS 2,074.15 -1.32
HCL Tech 1,045.50 -0.39
Tech Mahindra 700.65 -0.38
Company Price Change %Gain
NTPC 119.25 -2.05
TCS 2,074.00 -1.34
HCL Tech 1,045.75 -0.32
Infosys 818.05 -0.36

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results