Govt serves Anti-Profiteering notices to McDonald’s franchisee, Lifestyle, Honda Dealer

Govt serves Anti-Profiteering notices

Govt serves Anti-Profiteering notices to McDonald’s franchisee, Lifestyle, Honda Dealer.

NEW DELHI: Hardcastle Restaurants Pvt Ltd, the master franchisee of fast-food McDonald’s franchisees for West and South India, retailer Lifestyle and and Sharma Trading Ltd, a Jaipur-based dealer of Hindustan Unilever’s Vaseline, for not passing the benefits of reduced taxes and input tax credit under the Goods and Services Tax (GST) to the customers.

The  Directorate General Safeguards(DGS) issued notices to at least five entities, including Gurgaon realtor Pyramid Infratech and Jaipur-based entity, Sharma Trading, for allegedly charging 28% tax on Vaseline when the tax rate had been slashed to 18% on 15th November.

The notice sent to Hardcastle Restaurants Pvt Ltd in Mumbai, a consumer has complained that the restaurant has charged the same price of a cup of coffee(McCafe Regular Latte) as stated remained unchanged at Rs 142 even with the government reducing GST Tax Rate from 18% to 5%.

apart from, a departmental store has complained that Sharma Trading Company has not proceeded on the benefit of reducing Tax rate From  28% to 18% on Vaseline VTM 400 ml.

On 15 December 2017, the DGS had sent notices to Haryana-based real estate company, Pyramid Infratech Pvt Ltd, and a Bareilly-based Honda’s authorized car dealer for complaints against profiteering under the new indirect tax system. apart from, it had received 36 complaints against real estate Pyramid Infratech based in Gurugram, Haryana, for not passing on benefits of cost reduction post-GST rollout.


According to the structure of the anti-profiteering mechanism under the GST regime, complaints of local nature will be first sent to the state-level screening committee while complaints of the national level will be marked for the Standing Committee.


If the complaints have merit, the respective committees would refer the cases for further investigation to the DGS. The DGS would generally take about 3 months to complete the investigation and send the report to the anti-profiteering authority.


If the authority finds that a company has not passed on GST benefits, it will either direct the entity to pass on the benefits to the buyer or if the recipient cannot be identified will ask the company to transfer the amount to the buyer welfare fund within a specified period.


The authority has the power to cancel the registration of any entity or business if it fails to pass on to the buyer the benefit of lower taxes under the GST regime, but it would probably be the last step against any violator.


According to the anti-profiteering rules, the authority will suggest the return of the undue profit earned from not passing on the reduction in tax to consumers along with an 18% interest as also appoint penalty.

Share It
Tags: , , , , , , , , , , , , , , ,
Previous Post
Refund Process

Refund Process Under GST

Next Post

Step by Step Guide for GSTR-5


  1. Hi there there! Very good post! Please keep us posted!

    • Kina
    • January 5, 2018

    This article is made up of wonderful genuine thinking.
    The informational content here proves that things aren’t so black and white.
    I feel more intelligent from simply reading this.
    Keep posting.

  2. Attractive section of content. I just stumbled upon your site and in accession capital to
    assert that I acquire actually loved account your weblog posts.

    Any way I will be subscribing for your augment and even I success you access persistently rapidly.

  3. Keep all the articles coming. I really like reading your posts.

  4. Howdy, your website is really good. We do appreciate you excellent posts.

  5. It’s actually a great and useful piece of information. I am satisfied that you simply shared this helpful info with us. Please stay us up to date like this. Thanks for sharing.

  6. As a site owner I think the written content here is extremely excellent,
    thanks for your efforts.

  7. I happen to be reading out a few of your posts and i
    should say nice stuff. I will surely bookmark
    your blog.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.