DGAP finds firm profited by ₹250 cr.

The GST profiteering investigation arm has found FMCG firm P&G India guilty of not passing on GST rate cut benefits to the tune of about ₹250 crore by commensurate reduction in prices.

Based on a complaint filed before the standing committee, the Directorate General of Anti-profiteering (DGAP) investigated the books of accounts of P&G India pre and post-November 15, 2017, and concluded that the consumer goods manufacturer had not lowered the prices of certain products despite a cut in GST rate to 18% from 28%.

“The DGAP report has concluded profiteering worth ₹250 crore by P&G. The National Anti-Profiteering Authority will pass the final order on the quantum of profiteering after hearing the company’s views,” an official said. P&G’s India is the manufacturer of washing powder brands Ariel and Tide; shampoo brands Head & Shoulders and Pantene; cosmetics brand Olay, and shaving and dental hygiene brands Gillette and Oral-B. It also manufactures products under the brand name Ambi Pur, Pampers, Vicks and sanitary napkin Whisper.

A P&G spokesperson said: “ P&G has always been committed to passing on the net benefit of GST rate reduction to the consumers. We have passed the net benefit and communicated the same via advertising in the mass media to help increase awareness with the consumers, shoppers and retailers.”