Avalara > Blog > Goods and Services Tax > Samsonite denied the benefit of GST reduction to consumers

Samsonite denied the benefit of GST reduction to consumers

  • Jun 4, 2020 | Divita S Gupta

The National Anti-Profiteering Authority in India has held that Samsonite has denied the benefit of the reduction in Goods and Services Tax to its customers. This is in contravention of Section 171 of the Central Goods and Services Tax Act, 2017. An applicant had filed an application before the Standing Committee on Anti-profiteering alleging that a product supplied by Samsonite viz. the American Tourister Sky Tracer HL Blue 68cm hard trolley was sold to the applicant without reducing the GST rate from 28% to 18% as directed by the GST network. The maximum retail price (MRP) of the product remains unchanged even after a directive from the GST network to reduce the GST rate. The benefit of the reduced rate was not passed on to the consumer in this regard. Samsonite is now liable to a penalty under the provisions of Section 171 of the CGST Act.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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