Wednesday, January 20, 2021

Tatafirms, Starbucks Coffee and Infinity Retail Fined For Overcharging Customers

Must Read

James Cooper: Greener Bitcoin Mining is a US Opportunity – Coindesk

The incoming administration of Joe Biden has the opportunity to take the world lead in green mining for...

Six Swiss Exchange – CoinShares to launch a Bitcoin ETP on Coindesk

It joins several other ETP providers on the exchange, including its own physically backed bitcoin products, including the...

Blockchain Bytes: Goldman Sachs Investigates Crypto Custody, Resolves Blockchain ‘Trilema’ – Coindesk

Happy Martin Luther King Jr. Day to our US readers! A former Prime Minister of Canada has...


Tata Group firms Starbucks Coffee and Infinity Retail have been fined Rs 1.04 crore and Rs 1.9 crore respectively by the National Anti-Profiteering Authority (NAA) for having profiteered by allegedly not passing on the GST rate cut benefits to consumers. Starbucks Coffee operates in India through a 50:50 joint venture with Tata Group, while Infinity retail is Tata Group’s retail arm that operates Croma stores.

India’s profiteering watchdog has found Tata Starbucks guilty of not passing on the benefit of reduced goods and services tax (GST) rates to consumers to the tune of Rs 1.04 crore and escaping penalty.

The coffee chain has to deposit the amount within three months with 18% interest from the day the profiteered amounts were collected from consumers, NAA said in its order, reviewed by ABP News.

ALSO READ | WhatsApp Gets NPCI’s Nod To Offer Payment Services Via UPI; Will Compete With Google Pay, Paytm, Amazon Pay & More

The company had hiked the base price of a specific coffee product after the GST Council cut tax rates on restaurant services from 18% to 5% with effect from November 15, 2017, thus keeping the product’s retail sale price (pre- and post-GST rate reduction) unchanged.

NAA estimated the company’s quantum of profiteering based on an investigation by the Director-General of Anti-Profiteering for the period from November 15, 2017, to June 30, 2018, an order posted on the website of the NAA showed.

When asked for comments, a Tata Starbucks spokesperson in an email reply to an ABP news query said, “As a responsible business, Tata Starbucks will comply with the ruling. Tata Starbucks intends to explore our legal options on the basis of our belief that we have followed the law in accordance with the revision of the GST structure. “

In a separate matter, Tata Group’s consumer durables, and electronics retail arm, Infinity Retail, was fined Rs 1.9 crore for alleged GST profiteering from the sale of cameras and power banks after the new tax regime for electronic goods was reduced in 2019.

The NAA’s penalty on Infiniti comprised the profiteered amount from selling cameras worth Rs 1.41 crore and the sale of power banks worth Rs 49.8 lakh.

ALSO READ | Rent Agreement: Important Clauses You Must Have In Your Lease Or Rental Agreement

Infinity Retail operates the consumer durables and electronics retail business under the Croma brand has also been asked to reduce the prices of the products — power banks and DSLR cameras.

It may be recalled that the GST Council had reduced the tax rate on these items from 28% to 18% from January 1, 2019. The investigation covered the six months from January 1, 2019.

An email sent to Infinity Retail seeking comments remained unanswered till the time of publishing.

AS per GST laws, businesses are required to pass on the benefit of the tax rate cut to consumers immediately after the tax rate comes down. However, companies tend to increase the product’s base price to keep the retail sale price unchanged and, in the process, make more profits.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

James Cooper: Greener Bitcoin Mining is a US Opportunity – Coindesk

The incoming administration of Joe Biden has the opportunity to take the world lead in green mining for...

Six Swiss Exchange – CoinShares to launch a Bitcoin ETP on Coindesk

It joins several other ETP providers on the exchange, including its own physically backed bitcoin products, including the ETC Group.

Blockchain Bytes: Goldman Sachs Investigates Crypto Custody, Resolves Blockchain ‘Trilema’ – Coindesk

Happy Martin Luther King Jr. Day to our US readers! A former Prime Minister of Canada has said that Bitcoin could become...

Offline Travel App Raises লে 50 in Funding Round Led by Alemeda Research – Kindesk

An offline mobile map for travelers has raised $ 50 million in a fundraising round led by Almeida Research.Announced Monday, Fresh Capital will...

Archer Jeff Dorman in Crypto Trends to watch in 2021

What effect will crypto have on the nature of companies? Will test in crypto Governance Lab How do companies orchestrate leads to...

More Articles Like This