NAA Finds McDonald's Franchisee Hardcastle Guilty of Profiteering
IANS 14 December 2020
The National Anti-Profiteering Authority (NAA) has found Hardcastle Restaurants, a franchisee of fast food chain McDonald's, guilty of not passing on GST (goods and services tax) rate cut benefits of over Rs7.49 crore to consumers.
Hardcastle Restaurants was operating quick service restaurants under the brand name McDonald's in the western and southern regions of India.
In its final order on the matter given on 9th December, the NAA has held that Hardcastle Restaurants had resorted to profiteering by charging more price for some of its products even though GST on it reduced from 18% of 5% without input tax credit (ITC) with effect from 15 November 2017.
The NAA has also directed the restaurant to reduce prices of all impacted products commensurately in respect of which profiteering had been computed, keeping in view the reduced rate of tax and the benefit of ITC which has been availed.
It also directed Hardcastle to deposit 50% of the profiteered amount of Rs7.49 crore in the Central Consumer Welfare Fund and balance 50% on consumer welfare funds of 10 states where supplies by Hardcastle resulted in profiteering. The deposits will also attract 18 per cent interest rate applicable from the date from which higher amount was realised by the respondent despite tax cuts and will have to be deposited within a period of three months.
NAA said that though the offence attracted penalty, the same would not be applicable in this case as the penalty provisions has been inserted into CGST Act, 2017 with effect from 1 January 2020 and was not in operation between 15 November 2017 and 31 January 2018 where the violation took place.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
1 year ago
restaurants are meant for cheating. cheating on quality, quantity, billing, taxes.. reason most sports , persons have hotel and restaurants beauty parlors as money converters
Free Helpline
Legal Credit