Patanjali distributors under scanner for not passing tax cut benefits to customers, says report

Patanjali distributors have now come under the scanner of the National Anti-profiteering Authority (NAA) for allegedly not reducing prices in line with cuts in goods and services tax (GST), The Economic Times reported, citing people familiar with the matter.

The development comes after the authority penalised Patanjali for not passing the benefits of tax cuts to customers.

According to the report, the sources said that the NAA is now investigating whether the distributors had pocketed the benefits gained by the tax cuts. The NAA has issued notices to about ten of Patanjali’s biggest distributors over the past month for not reducing prices, the report added.