Nestle must be booked

So good to see this: An investigation by the Directorate General of Anti-Profiteering (DGAP) has found that FMCG major Nestle India indulged in profiteering of about Rs 100 crore by not passing on GST rate cut benefit to consumers, an official said. The DGAP, which has submitted its report to the National Anti Profiteering Authority (NAA), had conducted the investigation on a wide range of products of Nestle India and found that the company had not reduced prices of certain products in proportion to the cut in Goods and Services Tax (GST) rate. When contacted, a Nestle India spokesperson said the company has suo moto deposited money in the Consumer Welfare Fund in cases where it could not pass on the tax rate cut benefits to consumers. "We have taken appropriate measures to pass on commensurate benefits of GST to our consumers. We wish to reiterate that in situations where the benefit could not be passed on instantly by reduction in Maximum Retail Price or increase in grammage, the amount was set aside to be subsequently passed on and was not reckoned either in sales or in profit," a Nestle India spokesperson said. As per the provisions of GST law, a Consumer Welfare Fund has been set up wherein undue benefits made by businesses due to tax rate cut have to be deposited in cases where it could not be passed on to identified consumers. The DGAP probed the accounts of Nestle India based on a profiteering complaint against the company for not cutting prices of Maggi despite a reduction in tax rates by the GST Council in variety of items with effect from November last year. The Council had cut rates on 178 products, including chocolates, malt extract and food preparations of flour, starch or malt extract, Waffles and wafers coated with chocolate or containing chocolate, and Extract, essence and concentrates of coffee, miscellaneous food preparations. "Once a profiteering complaint is received against a company, the DGAP has the powers to look into the books of accounts and see if the benefits of tax rate cuts have been passed on in other products manufactured by the company as well. The DGAP has found profiteering to the tune of Rs 100 crore in the case of Nestle India," an official said. Nestle India, in an e-mailed response, said it as a responsible corporate citizen has passed on the benefits of GST to consumers. more  

Let GST council be made member of this group more  

How the rate was reduced to 15% when there is no slab of 15% in GST? more  

Yes, let the Profiteering authority initiate action. more  

All Pharma companies are drastically engaged in profiteering. No authority is there to look into despite several informations. more