“The methodology adopted by the respondent (J&J) while computing the benefit of tax reduction was illogical, unreasonable, arbitrary, and incorrect, and hence cannot be accepted,” the authority said in the order.
According to the authority, “the respondent (J&J) denied the benefit of tax reduction to customers in contravention of Section 17(1) of CGST Act, 2017 and has thus profiteered as per the explanation attached to Section 171 of the Act.”In its response, J&J submitted saying: “In the absence of any guidelines to compute and pass on the benefit of GST rate reduction by way of commensurate reduction in prices, the company discharged statutory obligation through various methods”.
J&J has been ordered to deposit the amount within three months.
Read the full order: https://bit.ly/35YQ7te
Source: Business Standard
