The National Anti-Profiteering Authority (NAA) has ordered FMCG major Nestle to deposit ₹73.15 crore with Consumer Welfare Fund for not passing GST rate reduction benefit to consumers. The authority said “there is no evidence that the Respondent (Nestle) has reduced his prices commensurate with the tax deductions” and has “even increased the same in respect of a number of products”. “The above amount of ₹192 crore has also been wrongly calculated by the respondent by applying arbitrary methodology and hence the above claim made by the respondent is incorrect,” the NAA said in its order. Based on facts, the NAA said, “the profiteered amount is determined as ₹89,73,16,384”. The company further said, “We are studying the order passed by the NAA and will consider appropriate action as advised”.
