The top pizza chain Domino’s is surrounded by a lot of trouble. They are caught in an act of crosshairs of the anti-profiteering authorities because they didn’t pass on the cuts laid for the goods and services of the customer tax. As per the rules of the anti-profiteering companies, it is essential for the companies to pass on any sort of benefits from the lower GST rate to the consumers compulsorily.
When the Anti-profiteering Directorate General found out that Domino’s had yet not reduced any sort of price on the food products even after the GST council has asked to cut on the restaurant's rate last November but instead they planned to pass on the selectively benefits.
As per a government official privy, “An investigation report has been issued,” to the development. Domino’s restaurants are operated by Jubilant FoodWorks in India which has taken up the franchise deal with the Domino’s chain Inc. in America.
A spokesperson from Jubilant came forward and stated in an email response
“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). However, JFL believes it has passed on the benefit on account of the reduction of GST rates to the customers and accordingly will represent its case before NAA,”
On 15th November 2017, the GST council meeting, they slashed that the total tax rate will fall between 5-18 per cent in restaurants. However, the Directorate General of the Anti-profiteering sat up an investigation in which it was clarified that the brand has yet not passed on the benefits to the customers that put them under questioning.
The anti-profiteering framework was launched by the Government to shield the rights of the customers from any sort of rise in the runaway prices that can rollout due to GST. It was under the office since 1st July 2017. As per the laws, the complaints that are made at the national level will be examined by the standing committee and when it will be on the state level than the official's committees of state screening need to look out for it.
If they feel that the complaint have some merit that DG needs to handle it. They investigate it for over 3 months before sending it to the National anti-profiteering authority that is responsible to issue an order.