Saturday, December 28, 2019

NAA fines J&J Rs 230 crore for profiteering from cut in GST rates

The National Anti-Profiteering Authority has imposed Rs 230.41 crore penalty on global healthcare major Johnson and Johnson (J&J) for profiteering from cut in goods and services tax (GST) rates.

“The methodology adopted by the respondent (J&J) while computing the benefit of tax reduction was illogical, unreasonable, arbitrary, and incorrect, and hence cannot be accepted,” the authority said in the order.
According to the authority, "the respondent (J&J) denied the benefit of tax reduction to customers in contravention of Section 17(1) of CGST Act, 2017 and has thus profiteered as per the explanation attached to Section 171 of the Act."

J&J has been ordered to deposit the amount within three months.

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