Director General of Anti-Profiteering Vs Procter and Gamble subsidiaries

GST rate was reduced from 28 per cent to 18 per cent with effect from November 15, 2017 vide Notf 41/2017-CTR. However, P&G subsidiaries increased prices on the intervening night of November 14 and 15 from when the rate reduction was notified. NAA noted that the benefit of tax reduction has to be passed on by way of commensurate reduction in monetary terms and it cannot be passed on in non-monetary terms by supplying additional quantities of the products.It added that the group cannot expect their distributors and retailers to pass the benefit down the supply chain to the ultimate consumer, when they themselves have not received the tax reduction benefit.