Nestle India has been slapped with a Rs 90 crore fine by the National Anti-profiteering Authority (NAA) for its failure to pass on the benefits of the goods and services tax (GST) reduction to consumers.
However, the fine is unlikely to have a significant impact on the Nestle stock as Rs 90 crore is paltry in the FMCG major's balancesheet.
Nestle has said that the company is studying the order carefully to consider appropriate actions, but it prides itself in being a responsible, responsive, and fully compliant corporate citizen.
The company also said that it had adopted a reasonable approach in the absence of regulations, so there were no clear guidelines with regards to anti-profiteering measures or passing on the benefits to consumers. Where it was possible the company had reduced rates or increased volume for the same price of its products, Nestle added.