Ramdev's Patanjali Ayurved Under Scanner for Failing to Pass on GST Benefits to Consumers

New Delhi: The directorate general of anti-profiteering (DG-AP) is investigating a complaint against Ramdev’s Patanjali Ayurved for not passing on price reduction benefits under the Goods and Services Tax (GST) to consumers, a government official has told CNBC-TV18.

According to the complaint, Patanjali allegedly profited on sale of toothpaste, shampoo, shaving cream and cosmetics following the biggest rate rationalisation decision by the GST Council in November 2017.

Patanjali did not respond to an email seeking a comment on the issue.

The DG-AP, upon completion of the investigation within three months or extended period of six months, shall furnish a report to the National Anti-profiteering Authority (NAA) which will then pass the suitable order against the person indulging in profiteering. Such order may include directing the reduction in prices and refund of benefit availed to consumers, according to the DG-AP website.

The NAA was set up by the government in July last year to penalise businesses for failure to pass on tax benefits to consumers.

So far, the government has received a total of 57 complaints of dealers not passing on GST benefits to consumers, with more than half of them coming from Haryana. Of these complaints, the NAA is investigating eight while the DG-AP is investigating 27 complaints.

Ramdev’s mega fast moving consumer goods (FMCG) firm Patanjali recently collaborated with e-commerce platforms to expand the reach of its products. The yoga guru also declared his plan to continue Patanjali as a non-governmental organisation (NGO).

Founded in 2006, Haridwar-based Patanjali Ayurved clocked an annual revenue of Rs 10,561 crore in the financial year ending March 2017. Revenue registered for the financial year 2015-16 was Rs 5,000 crore and Rs 2,007 crore for the fiscal before that.

As claimed by Ramdev during a press conference, Patanjali has created an ecosystem that is capable of settling up to one million orders every day. The latest move to launch its own e-commerce operations is reportedly aimed at increasing online sales to around 15% of the company’s total sales.