The National Anti-Profiteering Authority has ordered Johnson & Johnson to deposit the amount in a consumer welfare fund for failing to pass on the benefit of goods and services tax cut on some products. The order was passed by NAA chairman B.N. Sharma, who gave the US-based company three months to deposit the amount along with 18% interest in the national consumer welfare fund and in similar funds set up at state levels. The authority also held the company liable for penalty and asked the officials to issue a penalty notice. “The DGAP concluded that the amount of net higher sales realization due to increase in the base prices of the impacted products despite the reduction of GST rate from 28% to 18% or in other words, the profiteered amount, came to ₹230.4 crore,” the NAA order said. the rate reduction resulted in covering of items like shampoos, cosmetics, hair oil, goggles, shaving preparations and equipment like bulldozers and excavators.
