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GUILTY: Abbott Healthcare did not pass Rs 96.59 lakh GST benefit to consumers


GUILTY: Abbott Healthcare did not pass Rs 96.59 lakh GST benefit to consumers

Despite a fall in tax rates from 28% to 18%,  the base price of the product of Abbott was increased from Rs 202.06 to Rs 230.90 per unit which resulted in an increase of the selling price and denial of passing the benefit of tax reduction to the customers.

New Delhi: In a major setback, Abbott Healthcare has been found guilty of not passing on the benefit of Goods and Services Tax(GST) rate reduction to the tune of Rs 96.59 lakh to consumers. The anti-profiteering authority, in its probe, found the company guilty. The authority directed the Mumbai- based company to deposit the amount in the consumer welfare fund.

The Government has approved the constitution of a National Anti-Profiteering Authority (NAA), the institutional mechanism under the GST law to check the unfair profit-making activities by the trading community.

While investigating a complaint, the Directorate General of Anti Profiteering found the company had not passed on the GST rate cut benefit while selling “Melaglow Rich (Niainamide) Depigmentation & Glow Restoration Cream”.

Also Read: Abbott to acquire mitral valve device maker Cephea Valve Technologies

The tax rate on the product, which was 30.06 per cent in the pre-GST regime, was reduced to 28 per cent with the rollout of the goods and services tax from July 1, 2017, and further to 18 per cent with effect from November 15, 2017.
However, during these periods, the base price of the product was increased from Rs 202.06 to Rs 230.90 per unit which resulted in an increase of the selling price and denial of passing the benefit of tax reduction to the customers.
“Thus the total amount the benefit of which was denied to the recipients by Respondent No 1 (Abbott Healthcare Pvt Ltd) or the profiteered amount during the period w.e.f July 1, 2017 to July 31, 2018, comes to Rs 96,59,716.26,” the National Anti-Profiteering Authority (NAA) said in its order.

The NAA directed the company to deposit the profiteered amount to the Consumer Welfare Fund of the Centre and states, along with 18 per cent interest.

Also Read: Abbott India lines up 100 product launches over the next 5 years



Source: with inputs
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