The government crackdown against anti-profiteering after the rollout of goods and services tax (GST) has intensified. For the second time, notices have been sent out to companies for allegedly flouting rules. Three companies are now in the line of fire. One is Hardcastle Restaurants which runs fast food chain McDonald’s outlets in India, the second is Lifestyle, which sells clothes and accessories and the third is a stockist for fast moving consumer goods (FMCG) giant Hindustan Unilever (HUL).
Ever since the GST council cut the tax rates on over 200 items in November, the national anti-profiteering authority has come into action. The government has received a total of 169 complaints so far alleging that consumers are not getting the benefits of the cut in tax rates.
This issue aside, the electronic-way bill system, popularly known as the e-way bill is set to rollout across the country from February 1st. The government is advancing this to curb the loss of revenue due to illegal transport of goods between states following the absence of check posts, at least that is the government’s claim. But, many states have raised concerns and the latest to do so is Bihar which is worried about a smooth rollout of GST and the e-way bill mechanism.
Watch accompanying video of Pratik Jain, Leader-Indirect Tax at PwC India, Suresh Nandlal Rohira, Partner of Grant Thornton India LLP and Rohan Shah, Tax Expert for more details.