Samsung has been penalised by the NAA, over not passing GST benefit

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India’s National Anti-profiteering Authority (NAA) has charged a penalty of  ₹37.85 lakh on Samsung company. The reason being not passing on the benefits of reduction in goods and services tax (GST) rates on television sets to consumers.

The Centre had cut rates on TVs and power banks at the recommendation of the GST Council which is effective January 2019. The situation is , Samsung was fined for not reducing the selling price of 32-inch LED TV 32FH4003 despite a cut in GST rates to 18% from 28% on television sets. In addition to this , company also not reduced the prices of power banks too because of which an additional fine of ₹29,736 was also imposed on the company makes it total amount of penalty to ₹37,85,342.

The Director General of Anti-Profiteering (DGAP) had initiated a probe where they asked Samsung to submit a reply or else admit that they profiteered from the reduction in GST. According to the NAA, Samsung had submitted screenshots of price as listed on an online marketplace without giving any evidence to substantiate the supply which actually took place.

The standing committee in the matter was satisfied that there was prima facie evidence to show that the supplier had not passed the benefit of the reduction in the rate of tax to the recipients by way of commensurate reduction in prices.

“DGAP arrived at the profiteered amount by comparing the average of the base prices of the 32 inch LED TV and the power bank supplied by the respondent through different supply channels during 01-11-2018 to 31-12-2018 with the actual invoice wise base prices of the TV and power bank sold during 01-01-2019 to 31-03-2019.
The excess GST so collected from the recipients also included GST charged on the increased base price”.

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