Anti-profiteering: At least 5 entities issued notices
ET Online|
Jan 02, 2018, 03.10 PM IST
Anti-profiteering notices were served to at least five companies, including a Honda dealer, Hardcastle Restaurants, McDonald's franchisees for West and South India and retailer Lifestyle, for not passing on GST benefits to consumers.
The DG Safeguards also issued a notice to Jaipur-based Sharma Trading for allegedly charging 28% GST on Vaseline when the tax rate had been slashed to 18%.
However, what can really shake the industry is the notice against Hardcastle Restaurants, where the probe is based on a complaint that the price of a cup of coffee allegedly remained unchanged despite the government reducing GST from 18% to 5%.
The companies have been asked to provide copies of balance sheets, profit and loss account statements for 2016-17, GST returns for July-December, details of invoice-wise outward taxable supplies, two sample invoices for sale and purchase of goods each and price list before and after November 15.
The new nationwide tax regime has an anti-profiteering clause that allows consumers to complain against companies not passing on the benefits of reduced rates or input tax credit.
The notice issued to Pyramid Infratech has said that 36 buyers have accused the builder of not passing on the benefit of input tax credit to them, which would have lowered the total consideration for flats booked under the Haryana Affordable Housing Scheme.
A Bareilly-based dealer of Honda Cars India - Vrandavaneshwaree Automotive Ltd. has been accused of allegedly charging higher taxes when a Honda car booked in April but was delivered in July, after GST had been implemented.
In all cases, the complaints have been vetted by the standing committee on antiprofiteering, for which a penalty has been prescribed in the law to ensure that sellers pass on the benefits of lower taxes to consumers or do not overcharge tax. All the entities have been asked to submit documents and replies.
The DG Safeguards also issued a notice to Jaipur-based Sharma Trading for allegedly charging 28% GST on Vaseline when the tax rate had been slashed to 18%.
However, what can really shake the industry is the notice against Hardcastle Restaurants, where the probe is based on a complaint that the price of a cup of coffee allegedly remained unchanged despite the government reducing GST from 18% to 5%.
The companies have been asked to provide copies of balance sheets, profit and loss account statements for 2016-17, GST returns for July-December, details of invoice-wise outward taxable supplies, two sample invoices for sale and purchase of goods each and price list before and after November 15.
The new nationwide tax regime has an anti-profiteering clause that allows consumers to complain against companies not passing on the benefits of reduced rates or input tax credit.
The notice issued to Pyramid Infratech has said that 36 buyers have accused the builder of not passing on the benefit of input tax credit to them, which would have lowered the total consideration for flats booked under the Haryana Affordable Housing Scheme.
A Bareilly-based dealer of Honda Cars India - Vrandavaneshwaree Automotive Ltd. has been accused of allegedly charging higher taxes when a Honda car booked in April but was delivered in July, after GST had been implemented.
In all cases, the complaints have been vetted by the standing committee on antiprofiteering, for which a penalty has been prescribed in the law to ensure that sellers pass on the benefits of lower taxes to consumers or do not overcharge tax. All the entities have been asked to submit documents and replies.
