NEW DELHI: The GST investigative arm has found Tata Starbucks guilty of profiteering to the tune of ₹4.51 crore by not reducing prices of coffee despite a cut in the rate. This kept the retail sale price of the product pre and post GST rate reduction intact. When contacted, Tata Starbucks spokesperson said: "As a responsible organization, Tata Starbucks conducts its business ethically and complies with all the local laws and regulations". GST rate on restaurants was slashed to 5% without benefit of credit on inputs with effect from November 15, 2017. Before that the tax rate was 18% with input tax credit (ITC).

Source: Mint April 30, 2019 09:33 UTC