India’s leading ethnic apparel brand, Fabindia was freed of all the charges that were made against them for allegedly not passing on the Goods and Service Tax (GST) reduction benefits to their customers. The National Anti-profiteering Authority (NAA) cleared the retailer of the charges.
The complaint that was filed earlier this year, cited that Fabindia Overseas Pvt Ltd, Banjara Hills, Hyderabad did not reduce the price on few of its products even when the tax rate on the same was reduced by 9 per cent following the GST roll out from July, last year.
However, the Directorate General of Anti-Profiteering (DGAP) who investigated the matter, affirmed the media that the exact pre-GST tax rate on the said items was not 27 per cent but it was 14.5 and 16.5 per cent respectively.
Furthermore, PTI issued a report that stated NAA’s comment on the issue and it said that “based on the facts taken into consideration, it is clear that the Respondent has not conflicted the provisions of Section 171 (1) of the CGST Act, 2017. The merit in the applications filed by the complainant are no more relevant and hence this application is dismissed.”
It is pertinent to mark out that Fabindia had already cut down its base price for products in a bid to account for additional Input Tax Credit, this move favoured the decision in favour of the retailer, as it proved that the company was not profiteering.
Bharat Tex Special Report 2026 
