The directorate general of anti-profiteering (DG-AP) is investigating a complaint against Baba Ramdev’s Patanjali Ayurved for not passing on price reduction benefits under Goods and Services Tax (GST) to consumers, a government official told CNBC-TV18 on Tuesday.

As per the complaint, Patanjali allegedly profited on sale of toothpaste, shampoo, shaving cream, cosmetics, etc following the biggest rate rationalisation decision by the GST Council in November 2017.

Patanjali did not respond to an email seeking comment.

The DG-AP upon completion of the investigation, within a period of three months or extended period of total six months, shall furnish a report to the National Anti-profiteering Authority (NAA), who shall then pass the suitable order against the person indulging in profiteering. Such order may include directing the reduction in prices, refund of benefit availed to consumers etc, according to the DG-AP website.

The NAA was set up by the government in July last year to penalise businesses for failure to pass on tax benefits to consumers.

So far, the government has received a total of 57 complaints of dealers not passing on GST benefits to consumers, with more than half of them coming from the state of Haryana. Out of these complaints, the NAA is investigating 8 while the DG-AP is investigating 27 complaints.

First Published:Jul 24, 2018 2:05 PM IST