A probe by the GST anti-profiteering agency has found that Nestle India has profiteered about ₹100 crore by not passing on GST rate cut benefit to its consumers. The FMCG major has suo motu deposited ₹16.58 crore in the consumer welfare fund.
The Directorate General of Anti Profiteering (DGAP) has submitted its report to the National Anti-Profiteering Authority, in which it has concluded that Nestle India had not reduced prices of certain products in proportion to the cut in the Goods and Services Tax rate, an official said.
Suo motu act
When contacted, a Nestle India spokesperson said the company had, suo motu, deposited ₹16.58 crore in the Consumer Welfare Fund taking into account cases where it could not pass on the tax rate cut benefits to consumers.
“At our request, the authority, through its communication, had advised us to provisionally deposit the amount computed by us, suo motu, in the Consumer Welfare Fund, which has been done,” Nestle India said.
