The National Anti-Profiteering Authority (NAA) has ordered FMCG major Nestle to deposit Rs 73.15 crore with the Consumer Welfare Fund for not passing GST rate reduction benefit to consumers.

Reacting to the order, Nestle India said it would consider appropriate action after studying the same.

The NAA, which has been set up to examine complaints of not passing benefits to consumer under the goods and services tax (GST), rejected Nestle India’s claims that it has passed on benefits of Rs 192 crore by reducing the maximum retail price.

The authority said “there is no evidence that the respondent (Nestle) has reduced his prices commensurate with the tax deductions” and has “even increased the same in respect of a number of products”.

”The above amount of Rs 192 crore has also been wrongly calculated by the respondent by applying arbitrary methodology and, hence, the above claim made by the respondent is incorrect,” the NAA said in its order.

Nestle India said in a regulatory filing, “We are disappointed that the NAA has not accepted the methodology adopted by us to pass on the GST rate reduction benefit.”

The FMCG major further said, “In the absence of specific rules on profiteering for rate changes effective November 15, 2017, and January 25, 2018, impacting our products, Nestle India adopted the spirit of GST law by adopting a reasonable, pragmatic and market sustainable approach to pass commensurate GST rate reduction benefits.”