Massive setback for Samsung India! Slapped with notice for not passing GST cut benefits to customers

GST governing body has served a notice to Samsung India for allegedly not passing the tax benefits to customers and in turn making undue profits.

The GST Council, in December 2018, had announced a reduction in tax rates on television. (Image: Getty)

Notice was issued for not passing the tax benefits to customers

Complaint said Samsung was not transferring GST benefit on TV sets to its customers

The GST rate cut came into effect from January 1, 2019

New Delhi: In a massive setback to Samsung India, the Goods and Services Tax (GST) governing body has served a notice to technology conglomerate for allegedly not passing the tax benefits to customers and in turn making undue profits, people familiar with the development told news agency IANS. The Directorate General of Anti-Profiteering, sources said, slapped a notice to Samsung India based of a complaint which accused the tech major of not transferring the rate cut in the GST on television sets to its customers and rather making unjustified profits itself. The GST Council, in December 2018, had announced a reduction in tax rates on various electronics items including televisions with screen sizes of up to 32 inches from 28 per cent to 18 per cent. The GST rate cut came into effect from January 1, 2019. Prior to this, only the television sets with screens up to 26 inches were in the 18 per cent tax slab. The investigation arm of Central Board of Indirect Taxes and Customs has also sought documents of sales made by the company, the person said. Company sources have confirmed that a notice was received by the anti-profiteering body but they have further accused the channel partners of not passing on the benefit of lower duty to consumers. The Section 171 of Central Goods and Services Tax Act states that any reduction in the tax rate on goods or services or the benefit of the input tax credit shall be passed on to customers through a commensurate reduction in prices. Sources have also said that the company has no control over channel partners and some of whom might not have affected price cuts based on duty revision. “At the company level, pricing of all products was revised downwards post duty cuts and products were supplied to partners at lower per unit cost,” they told IANS. The duty of the anti-profiteering agency is to keep a stern eye and collect the evidence necessary to determine whether the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit has been passed on to the recipient by way of commensurate reduction in prices. Samsung India is not the first company to get such a notice. Several companies in the country have faced action from the anti-profiteering body over numerous complaints filed by consumers in the past.

Published at : 19 Apr 2019 05:32 PM (IST)

Follow Breaking News on ABP Live for more latest stories and trending topics. Watch breaking news and top headlines online on ABP News LIVE TV Khelo khul ke, sab bhool ke - only on Games Live

View More