THE WHAT? L’Oréal India has been found guilty of profiteering by the National Anti-Profiteering Authority (NAA), according to a report by The Economic Times.
THE DETAILS The company has been found guilty of not passing on GST rate cut benefit, which is worth over Rs 186.39 crore to its consumers.
As part of an investigation by the Directorate General of Anti Profiteering (DGAP) into the company’s tax between 15th November, 2017, and 31 December, 2018, the DGAP found that L’Oréal India hadn’t passed on the benefits of a tax cut from 28 to 18 percent.
This was found on a number of goods such as face wash, shampoo, hair colour, conditioner and select make-up products.
THE WHY? The NAA rejected L’Oréal’s claim it had passed on the benefit, stating the company had profiteered Rs 186,39,57,508 on account of denial of rate cut benefit to customers.
“The authority directs the Respondent to commensurately reduce the prices of the impacted goods,” the NAA order said.