Procter & Gamble Co. is under lens for anti-profiteering charges by the GST department for an amount of staggering 250 crores. The department argues that the company didn’t pass on the tax benefits to the customers.
Reportedly, the Directorate General of Anti-Profiteering in a report that has been given to the National Anti-Profiteering Authority claims that there are chances that the company has taken undue advantages of the GST rate cut.
Some of the products from the P&G brand like shampoo and detergents were brought into a lower GST bracket i.e. from 28% to 18%. The company officials, however, claimed that they have done their part of the responsibility and have also reduced down the tax rate on the products.
Also, the sanitary pad unit of the P&G is also suspected to be making profiteering under GST and will be reviewed by the tax department thoroughly. The department had asked for the sales documents from the company to ascertain the facts.
A company spokesperson said that “We will continue to cooperate with the authorities in this matter and provide clarifications, We hope that the authorities concerned will appreciate the procedure followed to pass on the GST benefit and will take a just view of the matter.”
