NAA investigating 250 retailers for 'profiteering'

The National Anti-profiteering Authority (NAA) is "internally" investigating around 250 retailers following complaints that they raised prices of pre-packaged items, more than warranted, following the imposition of goods and services tax (GST) post the July 18 changes in rates.

"We have received many complaints both from customers and field formulations about instances of jump in cost of pre-packaged foods," a person aware of the developments said. "So far, 250 retailers of all sizes are being internally investigated."

The person cited above said that apart from pre-packaged items, there are also complaints about retailers charging more even on large packs, which are otherwise exempted from tax.

This was despite the Centre giving a detailed clarification regarding new GST rates, which said that items sold in loose will be exempted from GST.

The Central Board of Indirect Taxes and Customs is closely monitoring the implementation of GST rate changes, which was applicable on common items including curd and lassi.

"The rules were notified clearing all ambiguities, still if the retailers are misusing it, strict action will be initiated against them," the person cited above said, adding that while increasing price is a commercial decision, if they are passing on more than a limit, it needs a detailed examination.

Notices had been sent to some retailers and will be sent to more in the coming days, the person said, without divulging any names.