The GST anti-profiteering Authority has found Harish Bakers & Confectioners guilty of not passing on GST rate cut benefit to the tune of Rs 15,958 crores to consumers. The case before the National Anti-Profiteering Authority (NAA) states that retailer Harish Bakers & Confectioners had hiked the base price of Nestle Munch Nuts 32 gm and Cadbury Dairy Milk Chocolate — after the GST Council slashed tax on them to 18 per cent from 28 per cent on November 15, 2017.
The Directorate General of Anti Profiteering (DGAP), which investigated the complaint, went through the books of accounts of the retailer for the period November 15, 2017 to March 31, 2018.
It was found that the base price of the Nestle Munch chocolate was increased from Rs 15.63 to Rs 16.95 a piece with effect from November 16. However, the MRP was retained at Rs 20 a piece, after charging 18 per cent GST.
Similarly, the base price of the Cadbury Dairy Milk was increased to Rs 33.90 from Rs 31.25 apiece. The MRP was retained at Rs 40 a piece, along with 18 per cent GST.
The DGAP has found that the retailer profiteered Rs 15,958 crore by not passing of the GST rate cut benefits to consumers.
Since Harish Bakers had already deposited Rs 1,299.69 into the consumer welfare fund (CWF), the NAA asked it to deposit the balance profiteered amount of Rs 14,658.31 crore to the CWF, along with 18 per cent interest.
The NAA also asked DGAP to further investigate the quantum of profiteering made by the distributor from April 1, 2018, and submit its report to the authority.