Tata Play guilty of profiteering ₹450 cr: NAA

The National Anti-profiteering Authority (NAA) has found direct-to-home (DTH) operator Tata Play (earlier Tata Sky) guilty of profiteering ₹450 crore from July 2017 to January 2019. In its order, the NAA has asked the company to deposit the profiteered amount in a consumer welfare fund with an interest rate of 18% in three months.

According to the order, the respondent has been directed to deposit the amount profiteered in two equal parts in the particular State Consumer Welfare Funds.

The NAA said Tata Play earned the amount by not passing on input tax credit (ITC) benefits to the customers after the introduction of goods and services tax (GST). On comparison of ITC available during pre- and post- GST regime, the authorities computed additional ITC to the tune of 4.19% which was required to be passed on by company to the consumers.


Tata Play did not respond to the queries sent by ET till the time of going to print.

The Director General of Anti-Profiteering (DGAP) had initiated investigation on a complaint of a subscriber alleging that the company had not passed on the commensurate ITC benefit to the subscriber for annual subscription.

"This authority has only been mandated to ensure that both the benefits of tax reduction and ITC which are the sacrifice of previous indirect tax revenue made from kitty of the central and the state governments are passed on to the end consumers," the order said. It also asked the concerned jurisdictional central GST/state GST commissioner to submit a report on compliance of this order to the authority within 4 months from the date of receipt of this order.