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Patanjali Fined for not passing GST Benefits to Consumers - NAA

2020-03-17

The National Anti-Profiteering Authority (NAA) has ordered a fine to Patanjali Ayurveda of Rs. 75.08 Crore for not passing the benefits of goods and services tax (GST) rate reduction on to the consumers. According to reports, the NAA has said that Patanjali had increased the price of their washing powder after GST reduction.

The fine along with 18% GST has to be deposited by Patanjali to Consumer Welfare Funds of the Central Government.

While the GST rates were revised from 28% to 18% in 2017, the Haridwar-based FMCG company was found to be holding on to the benefits of goods and services tax (GST) rate reduction instead of passing them to the consumers. The NAA noted that Patanjali instead increased the base prices of its washing powder.

The Director-General Anti-Profiteering (DGAP) has been directed to submit a compliance report on Patanjali within the next four months.

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