HUL to offer tranche of Jan. GST benefits

Firm had offered ₹119 cr. for Nov., Dec.

A salesman takes a bottle of Hindustan Unilever Limited (HUL) Dove shampoo from a shelf at a shop in Mumbai in this April 30, 2013 file photo. Indian companies say they can't plan more than a couple of months out as a fast-falling rupee currency drives up the cost of imports, forcing them to raise prices even as consumer spending crumbles. Makers of consumer goods like shampoos and soaps, popular defensive plays in weak economic times, are feeling the pinch, with market leader Hindustan Unilever Ltd posting lower sales volumes for a fifth consecutive quarter in the June period. REUTERS/Danish Siddiqui/Files (INDIA - Tags: BUSINESS)

Hindustan Unilever Limited (HUL) will offer another tranche of GST benefits to the government it could not pass on to customers for the month of January.

The fast moving consumer goods (FMCG) major has so far offered ₹60 crore for the month of November and another ₹59 crore for the month of December to be deposited into the Consumer Welfare Fund.

The DG Safeguards had asked HUL to explain the methodology behind the ₹119 crore profiteered sum, after the government referred its case to the agency.

‘Clarifications sought’

A HUL spokesperson, in an e-mail reply to a query from The Hindu, said, “DG Safeguards has sought some further clarifications on methodology and requested some supporting documents pertaining to the earlier issue in response to earlier communication with us. We are in the process of submitting those clarifications/supportings. The amount for January is in progress and will be shared in due course of time.”

In the absence of clear legal provisions on this subject, the company is awaiting advice from DG Safeguards, so that it can deposit cheques at the earliest.