From Maggi to Lifestyle Retail: Three instances where GST watchdog showed ‘consumer is king’

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Published: October 10, 2018 3:23 PM

National Anti-profiteering Authority (NAA) on Tuesday penalised a dealer based out of Uttar Pradesh for inflating the base price of Maggi instant noodles to deny consumers the benefit arising out of GST cut to 12 percent from 18 percent.

rupee vs dollar, weak rupee, rupee news, important news, trending news, rupee weakens, weakest rupe ever, dollar strong, dollar vs inr, usd vs inrIn the latest incident, the complaintaint, a Maggi retailer, claimed that the dealer has profiteered by selling at ‘Maggi noodles pack of 35 gram’. (REUTERS)

After penalising multi-brand retailer Lifestyle International and home-builder Pyramid Infratech, the National Anti-profiteering Authority (NAA) on Tuesday penalised a dealer based out of Uttar Pradesh for inflating the base price of Maggi instant noodles to deny consumers the benefit arising out of GST cut to 12 percent from 18 percent.

In the latest incident, the complaintaint, a Maggi retailer, claimed that the dealer has profiteered by selling at ‘Maggi noodles pack of 35 gram’, PTI reported. In its order, NAA asked the dealer to deposit Rs 90,778 plus an interest of 18 percent per annum to the consumer welfare fund of Rs 2,253 to the complainant.

Pratik Jain, partner and leader, indirect tax, PwC India, told FE:”This is another ruling which mandates that any benefit arising as a result of reduction in GST rate has to be passed on at each stock keeping unit level and the same cannot be passed on at a product or entity level. This is similar to what was held in the order issued earlier in the case of Lifestyle International.”

Meanwhile, in September, NAA had found multi-brand retailer Lifestyle International guilty of profiteering for denying consumers benefit of GST rate cut.

The authority directed the firm to return the profiteered amount to the complainant along with 18 percent interest, and deposit Rs 15,820 to the consumer welfare fund for excess amount collected from unidentifiable recipients.

In the same month NAA had ordered Gurugram-based Pyramid Infratech to refund over Rs 8.22 crore to 2,476 flat owners for the same reason.

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