The Delhi High Court has issued notices to the GST Council, the department of revenue, national anti-profiteering authority (NAA), Central Board of Indirect Taxes and Customs (CBIC) in a case relating to fine imposed by NAA against a detergent company in Delhi.NAA had imposed a fine of Rs 4.64 lakh, along with an 18% interest, on Excel Rasayan for allegedly not commensurately passing the reduced GST rates on to consumers.
The GST rate on detergents was cut from 28 per cent to 18 per cent on November 15, 2017.
However, company’s counsel Abhishek Rastogi said that the GST rate was still higher than under the pre-GST regime where the rate was only 12.5 per cent VAT. Hence there will be arguments on what is commensurate in this case.
