Page 50 - GSTL_26th March 2020_Vol 34_Part 4

J146 GST LAW TIMES [ Vol. 34
NAA orders Patanjali to pay ` 75 crore for not passing GST
cut
The National Anti-Profiteering Authority (NAA) has ordered Patanjali
Ayurveda Ltd. to pay up ` 75.08 crore for not passing on benefits of Goods and
Services Tax (GST) rate reduction on to consumers, adding that the company in-
stead increased prices of its washing powder.
The Authority has directed the company to deposit the amount, along
with 18% GST, to Consumer Welfare Funds of Centre and the States within three
months, according to a March 12 order.
“The respondent (Patanjali) has denied the benefit of tax reduction to
consumers in contravention of the Central GST Act...therefore a show cause no-
tice be issued directing it to explain why the penalty should not be imposed,” the
Authority added. 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.
To the company’s arguments that it bore the cost of rate increase when
compared to from pre-GST regime, and did not pass it on to consumers, were not
accepted by the authority on the grounds that the company took a business call
to not raise prices.
[Source : The Economic Times, New Delhi, dated 17-3-2020]

Government approves scheme for tax reimbursement to
exporters
The Government on 13-3-2020 approved a scheme for reimbursement of
taxes and duties, which were not refunded previously, to exporters with a view
to give boost to the country’s dwindling outbound shipments.
A decision to approve the Remission of Duties and Taxes on Exported
Products (RoD-TEP) scheme was taken in a Cabinet meeting chaired by Prime
Minister Narendra Modi at New Delhi.
The reimbursement of taxes such as duty on power charges; VAT on fuel
in transportation, farm sector, captive power generation; mandi tax: stamp duty
on export documents; CGST and Compensation Cess on coal in power produc-
tion; Central Excise duty on fuel used in transportation would make Indian
products competitive in global markets, Commerce and Industry Minister Piyush
Goyal told reporters.
Finance Minister Nirmala Sitharaman in September last year had said
this scheme will incentivise exporters at an estimated cost of ` 50,000 crore to the
exchequer.
These measures are compliant with the WTO (World Trade Organisa-
tion) norms. India is a member of WTO, which frames norms for global trade,
since 1995.
Goyal also said sectors and products under RoDTEP scheme will be noti-
fied in a phased manner and the MEIS benefits for those sectors and items will be
withdrawn.
This scheme was announced by Sitharaman in her Budget speech on
February 1. Goyal said with the rolling out of this new scheme, the Merchandise

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