In a mass movement strategy, now most of the reputed FMCG and IT firms are likely to file petitions in the court of Mumbai and Delhi to seek more clarity on the anti-profiteering clause of the GST. The reason for filing petition seems to pre-empt the notices of anti-profiteering being sent by the court to various other peers of the FMCG sector.
The petition will be seeking some of the intriguing issues of anti-profiteering to further help the FMCG sector to understand the clauses which will make them ready to fight against ill procedure being followed by the organization. Certain business entities including Lifestyle, Hardcastle Restaurants – south and western India’s McDonald’s franchisee and Hindustan Unilever are already facing threats of strict action from the anti-profiteering committee as there are complaints filed against them of profiteering after the implementation of GST.
These organizations are required to present their balance sheet, trial balance and profit and loss account of previous one year to the anti-profiteering committee. The anti-profiteering committee will ascertain the facts and figures of any difference in the documents and revenue records of these organizations helping them to find out any bridging gap in profiteering.
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The petitions filed are being done on a basis of reasoning of clauses of anti-profiteering as the companies which have sent the petitions to the court didn’t have any notice against them but still wanted to figure out the exact working of the anti-profiteering. An FMCG company stated that “There is a lot of ambiguity in the anti-profiteering clause.”