Jubilant Foodworks has been found guilty of not passing on GST-cut benefit of Rs 41.42 crore on sale of some pizza products. Jubilant Foodworks runs the chain of the highly popular Dominos Pizza, in India. The company has been instructed to deposit the illegal gain to the government, within a stipulated time period.

The matter came into light after a customer filed an email complaint to the National Anti-Profiteering Authority (NAA). The complainer expressed that the price of the product he ordered was not reduced despite a rate cut in GST from 18% to 5%.

The National Anti-Profiteering Authority (NAA), on investigating, found that the benefit of reduction in the rate of tax during the period November 15, 2017, to May 31, 2018, was not passed to the customers. The profits illegally earned amounts to 41.42 Cr.

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Jubilant FoodWorks is asked to refund to the applicant an amount of Rs 5.65 along with interest @18 percent from the date of charging the above amount from him till its refund.

“He is further directed to deposit the balance amount of Rs 41,42,97,629.25 in the ratio of 50:50 in the Central and the State Consumer Welfare Funds along with interest @18 percent till the same is deposited, within a period of 3 months,” the NAA said.
A show cause notice has been issued to explain why the penalty should not be imposed on the company.