Jubilant guilty of not passing ~41-cr GST benefit on pizza sale

Jubilant FoodWorks, the operator of Dominos Pizza chain, has been found guilty of not passing on GST-cut benefit of ~41.42 crore on sale of some pizza products and has been directed to deposit the illegal gains with the government. The National Anti-Profiteering Authority (NAA) passed the order on an email complaint filed by a customer that Jubilant had not reduced the prices of 'Dominos Stuffed Garlic Bread' and 'Medium Veg Pizza' despite a cut in GST rate from 18 per cent to 5 per cent. The NAA held that Jubilant has not passed on the benefit of reduction in the rate of tax to its customers during November 15, 2017, to May 31, 2018. “The respondent (Jubilant) is directed to refund to the applicant an amount of ~5.65 along with interest @18 per cent from the date of charging the above amount from him till its refund. It should also deposit ~41.42 crore in the ratio of 50:50 in the Central and the State Consumer Welfare Funds along with interest @18 per cent till the same is deposited, within a period of 3 months," the NAA said.