The Delhi Court recently send notifications to the GST Council, the department of revenue, national anti-profiteering authority (NAA), Central Board of Indirect Taxes and Customs (CBIC) in a serious concern as fine is being imposed by NAA in opposition to one of the leading detergent company in Delhi.
A fine of Rs 4.64 lakh along with 18% percent interest had been imposed by NAA against Excel Rasayan, dealing in the detergent company in Delhi for allegedly not providing the benefits of the reduced GST rates to the consumer.
The GST Council had reduced the GST rates on detergent from 28 percent to 18 percent on November 15, 2017. In respect of this, the company tax expert stated that even after the reduction in GST tax rates, the tax rates on detergent was excessive than the previous VAT regime.
Previously, Excel Rasayan – the detergent company had pulled out 12.5 per cent value added tax and excise duty was exempted.
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The tax expert said, “While the rate was reduced from 28 percent to 18 percent, the pre-GST rate was only 12.5 percent VAT. The moot point is whether there is any reduction in the tax rate at all.”
He further added that each word of the law is relevant and important so that there is a clear discussion on the matter.
