Business Other News 17 Jan 2018 Centre slaps profite ...

Centre slaps profiteering notice on HUL for not passing on benefits

PTI | DECCAN CHRONICLE
Published Jan 17, 2018, 12:37 am IST
Updated Jan 17, 2018, 12:37 am IST
This is the sixth notice issued by DGS, the investigative arm of the finance ministry, to entities for not reducing prices post GST implementation from July 1.
 This is the sixth notice issued by DGS, the investigative arm of the finance ministry, to entities for not reducing prices post GST implementation from July 1.

New Delhi: The Directorate General of Safeguards has slapped notice for profiteering on  HUL for allegedly not passing on price reduction benefit to consumers post GST rollout.

This is the sixth notice issued by DGS, the investigative arm of the finance ministry, to entities for not reducing prices post GST implementation from July 1.

“The standing committee had referred the matter to DGS which in turn has issued queries to HUL seeking response on whether the benefit of tax rate reduction post GST is passed on to consumers,” a source said.

In an email response to queries sent by PTI, HUL said it has received the notice from DGS on January 16. “We are in the process of ascertaining the full details. We will respond to the same stating our position,” it said. “HUL remains fully committed towards ensuring that all benefits arising from reduction in GST rates are fully passed on to the consumers. We have communicated to trade asking them to pass on the benefits to consumers,” the company said.

As part of its investigation, the DGS usually calls for a company’s balance sheet, profit and loss account, GST returns and details of invoice wise outward taxable supplies.

It also scrutinises the price list prior to and post GST rollout. The company is given over a fortnight time to respond to the notice. After studying the documents, the DGS gives its report to the Anti-Profiteering Authority for further action, which may include fine and extreme penalty like cancellation of registration.

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