December 5, 2020

Samsonite told to pay ₹25.7cr for not passing on GST benefits, Retail News, ET Retail


New Delhi: The National Anti-Profiteering Authority has ordered Samsonite India, makers of American Tourister travel bags, to pay ₹25.73 crore for continuing to charge higher goods and services tax (GST) from customers despite tax rate reduction from 28{3c1cc63dfd7b7001b61fe8b0a968a5593be5b3a2050e971c1a18ae4d0bc9124f} to 18{3c1cc63dfd7b7001b61fe8b0a968a5593be5b3a2050e971c1a18ae4d0bc9124f} in 2017.

The authority also held that the Director General of Anti-Profiteering (DGAP) can initiate investigation on the basis of complaints other than those of the buyers of the product as this was enabled under the anti-profiteering provisions.

“The respondent has acted in contravention of the provisions of Section 171 of the CGST Act 2017 and not passed on the benefit of reduction in the rate of tax by commensurate reduction in prices. Accordingly, amount of profiteering is determined as ₹25.73 crore,” the authority said in its order dated April 28 — which was passed later due to Covid-19 induced lockdown—while upholding the agency’s investigation report.


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