The Directorate General of Safeguards (DGS) has served a notice to Jubilant FoodWorks under the GST anti-profiteering rules for allegedly not passing on tax reduction benefit to consumers of its Domino’s Pizza.
The GST council took a decision in November to cut the rate to 5% from 18% for all restaurants other than those that are located in hotels and the room tariff of which is Rs. 7,500 or more. Earlier 18% GST was charged on AC restaurants while 12% on non-AC restaurants.
Jubilant is among the 15 companies to have got notice from DGS so far since the implementation of GST regime.
It operates Domino’s Pizza and Dunkin’ Donuts outlets in India, has shut 13 Dunkin’ Donuts and 8 Domino’s stores.
Directorate general of Safeguards (DGS) has given a notice to Jubliant FoodWorks that alleges it has not passed the benfit of GST rate cut to its customer.
A source told PTI,“There were complaints from two consumers to the standing committee regarding over-charging by Domino’s Pizza even after the GST rate was cut to 5 per cent from 18 per cent.”
After DGS studies the response, it will submit its report to the Anti-Profiteering Authority. On the basis of the report, further action will be decided that may be fine or cancellation of registration.DGS has 3 months time to complete the investigation, however it may ask for an extension of 3 months if required.
