The Goods and Services Tax (GST) investigative arm has found Tata Starbucks guilty of profiteering to the tune of Rs 4.51 crore by not reducing prices of coffee despite a cut in the rate.
Investigation by the Directorate General of Anti Profiteering (DGAP) has revealed that Tata Starbucks, the equal joint venture between the Tata and global coffee chain Starbucks, had hiked the base price of one its coffee variant after the GST Council cut tax rates on restaurants from 18 percent to 5 percent with effect from 15 November, 2017.
This kept the retail sale price of the product pre and post-GST rate reduction intact.
https://www.firstpost.com/business/gst-evasion-dgap-finds-tata-starbucks-guilty-of-profiteering-rs-4-51-cr-firm-says-it-complies-with-local-laws-regulations-6544351.html
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The Goods and Services Tax (GST) investigative arm has found Tata Starbucks guilty of profiteering to the tune of Rs 4.51 crore by not reducing prices of coffee despite a cut in the rate. Investigation by the Directorate General of Anti Profiteering (DGAP) has revealed that Tata Starbucks, the equal joint venture between the Tata and global coffee chain Starbucks, had hiked the base price of one its coffee variant after the GST Council cut tax rates on restaurants from 18 percent to 5 percent with effect from 15 November, 2017. This kept the retail sale price of the product pre and post-GST rate reduction intact. https://www.firstpost.com/business/gst-evasion-dgap-finds-tata-starbucks-guilty-of-profiteering-rs-4-51-cr-firm-says-it-complies-with-local-laws-regulations-6544351.html