The National Anti-Profiteering Authority (NAA) has slapped a penalty of Rs 230 crore against Johnson & Johnson (J&J) for profiteering from goods and services tax (GST) rate cut.

“The methodology adopted by the respondent (J&J) while computing the benefit of tax reduction was illogical, unreasonable, arbitrary, and incorrect, and hence cannot be accepted,” the authority said in its order.

The NAA said that it was "absolutely clear that the respondent has not commensurately reduced prices but has in fact increased them by adding tax costs and losses from November 15, 2017 on the base prices that he was already charging."

It added that, therefore, it was clear that the company did not have any intention of passing on the benefit of tax cut to customers.

Johnson & Johnson is required to deposit the penalty amount within three months.

First Published:Dec 26, 2019 9:22 AM IST