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”.