Business

GST watchdog fines J&J ₹230 crore

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The National Anti-profiteering Authority (NAA) has asked Johnson & Johnson(J&J) India to deposit a little over ₹230 crore with the Centre and States for making profits by not passing the GST benefits to consumers. J&J has been asked to deposit the amount in three months.

The NAA said that the methodology adopted by J&J to pass on GST rate cut benefits to consumers was “unreasonable, arbitrary and incorrect and thus can not be accepted.”

As per the order, when GST rates were reduced from 28% to 18% on products sold by J&J from November 2017, the company did not fully pass on the financial benefits to customers. NAA said the benefits of input tax credit should have been passed on to the recipients by way of commensurate reduction in prices.

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Printable version | Jan 30, 2020 3:34:31 AM | https://www.thehindu.com/business/gst-watchdog-fines-jj-230-crore/article30397416.ece

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