The National Anti-Profiteering Authority (NAA) has now ordered Patanjali Ayurveda Ltd to pay up ₹75.08 crores. The reason being Patanjali is not passing on the benefit of goods and services tax (GST) rate reduction to consumers and the company increased prices of their washing powder. The authority ruled that benefits of rate change from 28% to 18% and from 18% to 12% in November 2017, were not given to consumers. The authority has directed the company to deposit the amount, along with 18% GST, to consumer welfare funds of Centre and the states within 3 months.
The Patanjali has denied the accusations and therefore a showcause notice has been issued which direct them to explain why the penalty should not be imposed. The authority also set aside arguments that the investigation was violation of it’s Constitutional right to do business in the country. The Director General Anti-Profiteering (DGAP) has been ordered to submit a compliance report within 4 months.