Domino's Pizza gets notice for not passing on GST benefits to consumers

Jubilant FoodWorks Ltd, which which operates Dominos Pizza and Dunkin Donuts chains across India, has been slapped a profiteering notice for allegedly not passing on GST rate cut benefits to consumers at its Dominos Pizza outlets.

Confirming the development, Jubilant FoodWorks said that it has received the notice, but denied the charges, saying that it has passed on the benefits to customers.

The company would represent its case before the NAA.

"The company has received a copy of the investigation report submitted by the Director General Anti Profiteering (DG) to the National Anti-Profiteering Authority (NAA)," said Jubilant FoodWorks Company Spokesperson.

It further said: "However, the Company believes that it has passed on the benefit on account of reduction of GST rates to the customers and accordingly will represent its case before NAA."

In November, the GST Council cut tax rates for all restaurants, except the ones located within hotels with room tariffs of Rs 7,500 and above, to 5 per cent.

 

Prior to reduction, GST was 18 per cent for air-conditioned restaurants and 12 per cent for non-air-conditioned restaurants.

Jubilant FoodWorks is one of the 15 profiteering notices sent by DGS so far since the rollout of GST on July 1.

As part of its investigation, DGS asks the company to submit any document it wants to to defend its case.