Companies

Jubilant FoodWorks on NAA order: Loss due to withdrawal of input credit higher than price hike

Our Bureau New Delhi | Updated on February 05, 2019 Published on February 05, 2019

Jubilant FoodWorks, which operates Domino’s Pizza, on Tuesday said the National Anti-Profiteering Authority did not take into account the impact of input credit withdrawal while passing its order against the company.   -  BusinessLine

Jubilant FoodWorks, which operates Domino’s Pizza, on Tuesday said the National Anti-Profiteering Authority (NAA) did not take into account the impact of input credit withdrawal while passing its order against the company. The NAA fined the company Rs 41.42 crore for not passing on the benefit of a reduction in GST to consumers on Monday.

In a statement, the company said, “We would like to assert that the loss to the company due to Input Credit withdrawal was far higher than the price increase that was taken, and this wasn’t taken into account by the NAA.”

The company said it “ unreservedly” supported the reduction of GST on restaurants to 5 per cent. “In the absence of any explicit rules and guidelines, we followed the spirit of the law and passed on the benefit of GST reduction to our customers with immediate effect,” the company added.

“We are studying the order in detail and will be exploring all possible options for the future,” Jubilant FoodWorks said.

NAA has directed the company to deposit this amount in Central and State Consumer Welfare Funds within three months.

Published on February 05, 2019
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