National Anti-profiteering Authority: L’Oreal and India Bulls caught in profiteering, both did not pass on the benefit of GST to the customers
The National Anti-Profiteering Authority (NAA) has found L’Oreal India and India Bulls Real Estate guilty of profiteering. Both the companies have not passed on the benefit of GST to the customers. The NAA said that L’Oreal has made a profit of Rs 186.39 crore, while India Bulls has made a profit of Rs 6.46 crore.
A Directorate General of Profiteering (DGAP) investigation found that the GST on a number of goods was reduced from 28 per cent to 18 per cent. But L’Oreal did not pass on the benefit to the customers despite the reduced GST on face wash, shampoo and some makeup products with effect from November 15, 2017. On this basis, the company has been ordered to deposit 50 percent of the profiteering amount or Rs 93 crore in the Central Consumer Welfare Fund and the rest in the state funds.
order to reduce product prices
With this, DGAP has ordered the company to reduce the prices. It had investigated L’Oreal between November 2017 and December 2018, in which this information was found. It said that the company did not reduce any price at that time and it caused loss to the customers.
On the other hand, India Bulls was told by the regulatory house that it did not pass on the benefit of input tax credit of 6.46 crore to the home buyers. An inquiry was conducted on the complaint of a home buyer and this information came to light. India Bulls has been ordered to return the amount with interest at 18 per cent per annum.
