Insta
Baba Ramdev with Patanjali products (Arvind Yadav/Hindustan Times via Getty Images)
Casting a wider net against FMCG firms alleged to be profiteering from GST rate cuts, DGAP has opened new investigations against two giants in the sector ITC and Patanjali Ayurveda, reports Business Standard (BS).
These firms are alleged to have benefited disproportionately from GST rate cuts by refusing to cut product prices in line with the new tax rates. Thus, though the consumers continued to pay the same prices as in the pre-GST era, the companies made bigger profits since their tax liability had come down.
One of India's largest conglomerates, ITC affirmed that it had received enquiries from the DGAP.
“We are continuously providing necessary information to the authorities. We are in full compliance with the law and will continue to cooperate with the authorities. The matter is subjudice and, therefore, we would not like to offer any further comment at the moment,” said an ITC spokesperson.
DGAP has also claimed that Baba Ramdev-led Patanjali profiteered close to Rs 176 crore on various FMCG items till August 2018. “We are now extending our investigation to check further profiteering by Patanjali till March 2019,” said a government official.
Not The Only One
Over the past few months, Directorate General of Anti-Profiteering (DGAP) had initiated inquiries against other FMCG giants like P&G India, Hindustan Unilever and Johnson & Johnson (J&J). Investigations are also underway against electronics giant Samsung.
In all these instances, the companies denied allegations of wrongdoing.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest