Jubilant FoodWorks slips 6% after NAA fine

NEW DELHI: Shares of Jubilant FoodWorks slipped over 6 per cent on Tuesday after being fined by the National Anti-Profiteering Authority (NAA). The company, which operates the Domino’s Pizza chain in India, was fined Rs 41.42 crore for not passing on the benefit of a reduction in the goods and services tax (GST) to consumers.

The company has been asked to deposit the amount with the government.

The scrip closed at Rs 1,303.25, down 6.45 per cent while the benchmark BSE Sensex closed up 0.09 per cent at 36,616.81.


The order was passed on an e-mail complaint filed by a customer that Domino’s had not reduced the price of ‘stuffed garlic bread’ and ‘medium veg pizza’ even after the GST rate was cut to 5 per cent from 18 per cent.

The GST council had cut rates on restaurants to 5 per cent without input tax credit (ITC) from 18 per cent with ITC, with effect from November 15, 2017. The authority held that Jubilant did not pass on the benefit of this reduction to customers during the period from November 15, 2017 to May 31, 2018.

It also asked the company to reduce prices of its products by way of commensurate reduction in taxes.

The shares of Jubilant FoodWorks had opened at Rs 1,360 on BSE against its previous closing of Rs 1393.15.