Samsung fined over Rs. 37 lakhs for unfair profiteering

Samsung fined for Unfair Profiteering

Based on the recommendations of the GST council, the Government of India reduced the GST on TVs and power banks in January 2019. Earlier, the applicable GST on TVs was 28% which was brought down to 18% in January 2019. The suppliers of TVs and Power banks were supposed to pass on the benefits of GST reduction to their end consumers. The South Korean electronics goods supplier seems to have defaulted on this and has been alleged of unfair profiteering. 

Rahul Sharma, a petitioner had alleged that Samsung did not reduce the selling price of its LED TV (Model 32FH4003) post rate cut on GST. Also, Samsung did not reduce the prices of Power banks. The National Anti-Profiteering Authority (NAA), a standing committee on anti-profiteering has slapped a fine of Rs. 37,85,342 on Samsung for not passing on benefits of GST rate cut to end consumers. Rahul Sharma had filed an application to NAA in 2019. 

Samsung had rebutted the allegations made by the petitioner Rahul Sharma, citing that he didn’t produce enough evidence. Samsung in a reply said that the petitioner had only submitted screenshots from the e-commerce website Amazon and had not produced any concrete evidence of actual supply. Samsung also said that it was not the seller on Amazon, but the listing was done by some third-party distributors namely Jumbo Distributors Pvt. Ltd. and EP Electronics Paradise Pvt. Ltd. Director-General of Anti-Profiteering (DGAP) initiated a probe on the application of Rahul Sharma and found that indeed Samsung Electronics India Pvt. Ltd. was the supplier of the said LED TVs on Amazon. 

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