New Delhi: The National Anti-Profiteering Authority (NAA) has slapped a fine of Rs 230 crore against Johnson & Johnson (J&J) for not pasing ont he benefits of goods and services tax (GST) rate cut to its customers.
“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 its order.
The NAA said that it was "absolutely clear that the respondent has not commensurately reduced prices but has in fact increased them by adding tax costs and losses from November 15, 2017 on the base prices that he was already charging."
It added that, therefore, it was clear that the company did not have any intention of passing on the benefit of tax cut to customers, accodrding to a CNBC-TV18 report.
