By Nirbhay Kumar
New Delhi, Dec 16 (IANS) Fast-moving consumer goods (FMCG) firms have topped the list of customers complaints list for over-charging ever since the new indirect tax regime Goods and Services Tax (GST) was rolled out on July 1, 2017.
Restaurateurs came second, followed by entertainment and media firms.
As per official data, as many as 42 consumer complaints were registered against various FMCG companies with many of them found to be not passing the benefits of lower tax rates.
As GST rates were cut across various categories in the GST Council meetings to reduce tax incidence on consumers, the companies were expected to pass on the benefit by lowering prices in proportion to the rate reduction.
It was, however, found that many companies had not passed on the benefit of lower tax and indulged in profiteering. Complaints were later filed against them and the GST anti-profiteering watchdog National Anti-profiteering Authority (NAA) took up the cases.
Some of the FMCG majors like Hindustan Unilever Ltd (HUL), Procter & Gamble India (P&G) and Nestle were found to have profiteered from the lower tax regime.
In the latest case, the NAA last week ordered Nestle to deposit Rs 73.15 crore with Consumer Welfare Fund for not passing GST rate reduction benefit to consumers. The FMCG major has, however, said that it will consider appropriate action after studying the same.
Experts said that it is very difficult for FMCG companies to assess the exact impact of the lower tax given that they have multiple similar products in one category.
Moreover, they sell products for as low as Rs 2 for a shampoo pouch and when the rate is lowered they are not in the position to exactly assess the impact on price. Even if the assessment is done and it is found that the price should be lower by 30 paise, transaction becomes difficult as currency of that amount is not available.
"Because of multiple products of similar kind it is difficult for FMCG companies to arrive at a particular price. There are very small units like toffee selling for Re 1. In this case it will be very difficult to arrive at net impact of rate cut," said Amit Bhagat, Partner, Dhruva Advisors.
Besides FMCG, many restaurants are also facing complaints with 14 cases being lodged. Two complaints were filed against sanitary ware firms. Media and entertainment firms have six complaints against them.
(Nirbhay Kumar can be contacted at email@example.com)
New Delhi, Jan 22 (IANS) Samsung India on Wednesday said that it grabbed 33.9 per cent market share in the second half of 2019 (July-December period) to become the top refrigerator player in India and aims to secure 35 per cent market share in the first half of this year.
According to Raju Pullan, Senior Vice President, Consumer Electronics Business, Samsung India, the feat has been achieved across models and the new range of refrigerators provides meaningful 'Make for India' innovations that not only offer more storage space but are engineered to consume less energy.
"We achieved the top slot in the Indian market in H2, 2019 with securing 33.9 per cent market share. With the new range, we expect to garner 35 per cent market share in the first half of this year," Pullan told IANS.
The company on Wednesday introduced India's first frost-free refrigerator with base stand drawer, in which people can store non-perishable itels, and five-star direct cool single door refrigerator lineup based on new 2020 Star Ratings - apart from the Curd Maestro refrigerator that will not just preserve food but also prepare it.
"We now see great demand coming from smaller towns where people want more storage in refrigerators. Our new range is an attempt to address those needs," said Pullan.
The frost-free refrigerator with base stand drawer gives it a tall-boy design preferred by Indian consumers.
Catering to the need for varied designs and patterns, the line-up will be available in new design patterns, in 253-litre capacity.
The five-star direct cool single door refrigerators are in line with new 2020 Energy norms with capacity of 198-litres.
A solution to long power cuts, the model comes equipped with digital inverter technology allowing the refrigerator to run on a home inverter as well as solar energy with reduced power consumption.
The new lineup comes with 10-year warranty on the compressor and digital inverter technology with stabilizer free operations.
"The 2020 line-up is uniquely designed for extra space and also sports the next-gen horizontal curve door design along with the 'GARO' handle, a first for the Indian market," informed Pullan.
The new refrigerator line-up is available across retail channels and on Samsung Shop and will range from Rs 17,990 for the new 198-litre direct cool single door refrigerator and Rs 45,990 for the smart convertible 5-in-1 model.
Curd Maestro models will be priced between Rs 30,990 and Rs 45,990, said the company.