Nestle fined Rs 90 cr for not passing on GST rate cut

New Delhi: The national anti-profiteering agency has slapped a Rs 90 crore penalty on FMCG giant Nestle India for not passing on the benefit of the goods and services tax (GST) reduction to consumers. It also asked Nestle to deposit the amount within 3 months.

The maker of products, like Maggi and Kitkat, Nestle, "has denied the benefit of tax reduction to customers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has thus profiteered."

"Profiteered amount as determined as Rs 89,73,16,384 as per the provision of Rule 133(1) of the above rules as has been computed," the December 10 order said.