The department of Legal Metrology has penalised two wall putty manufacturing companies in Jammu allegedly for not passing on the benefit of GST rate cut to consumers.
The two companies did not mark revised rates on their products after the central government slashed GST slab on such items from 28 per cent to 18 per cent.
The cases of both the companies were compounded and penalty of Rs 75,000 was imposed and recovered, an official spokesman said.
He said a team of the Legal Metrology department conducted a surprise inspection of the clearing and forwarding (C&F) establishments of two leading companies at Kunjwani and Trikuta Nagar.
It was found that after the reduction of tax slab from 28 per cent to 18 per cent, both the C&F conducted the sale of wall putty with tax slab of 18 per cent and issued the sale bill to dealers but reduced MRP for the benefits of consumers was not marked on the wall putty bags, the spokesman said.
The Centre has issued directions that all such pre-packed commodities with reduced GST slab must bear revised MRP so that consumers can avail the benefit of tax reduction.
The team seized all the documents related to sale of such bags and stopped any further selling of the products till the necessary rectification was done by the management of the two companies, the spokesman said.
The management assured to comply with all the provisions.
The reduced MRP was marked on the wall putty bags, the spokesman said.
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