Nestle Asked To Deposit GST Rate Cut Gains In Consumer Welfare Fund
Nestle India Ltd. today said it has been asked by the National Anti-Profiteering Authority to provisionally deposit the sum computed by the company gained from the reduction in the Goods and Services Tax rate in the Consumers Welfare Fund.
While it did not disclose the amount set aside, the company said in a regulatory filing that it has taken appropriate measures to pass on commensurate benefits of GST to consumers and will continue to do so.
Nestle India said it had a discussion with the authority even as it was in the process of taking the next step to pass on the benefits to consumers.
“At the company’s request, the authority through its communication has advised us to provisionally deposit the amount computed by us, suo moto, in the Consumer Welfare Fund to be constituted under Central GST and furnish the necessary documents,” the company added.
Last year on Nov. 15, the government had slashed GST rates on 178 items, including FMCG items, from 28 percent to 18 percent and asked the companies to pass on the benefits to consumers.
Nestle India said: “In situations where the benefit could not be passed on instantly by reduction in MRP or increase in grammage, the amount was set aside to be subsequently passed on and was not reckoned either in sales or in profit”.