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Jan, 02 2018

Anti-profiteering case against McDonald's for overcharging

According to the complaint file the price of a cup of coffee allegedly remained unchanged at Rs 142.

Hardcastle Restaurants, McDonald’s franchisees for West and South India is facing anti-profiteering action for not passing on the gains of Goods and Services Tax (GST) to consumers.

According to the complaint file the price of a cup of coffee allegedly remained unchanged at Rs 142 despite the government reducing GST from 18% to 5%.

Several restaurants had increased menu prices, resulting in a situation where the gain to the customer was reduced, a move that did not go down well with the government. The notice initiating investigation was issued by DG Safeguards on 29th December 29. “We have not received any such communication,” shared Hardcastle Restaurants.

The complaints have been vetted by the standing committee on anti-profiteering, for which a penalty has been prescribed in the law to ensure that sellers pass on the benefits of lower taxes to consumers or do not overcharge tax. All the entities have been asked to submit documents and replies.

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