CHANDIGARH: The district consumer disputes redressal forum directed a store called Unlimited in Elante mall to pay Rs 3,000 each to two different complainants for charging Rs 17 and Rs 19 as Goods and Service Tax (GST) on MRP after giving a discount on products purchased. The forum clarified that since the MRP is inclusive of all taxes, no additional GST can be charged.
In one of the complaints, Harpreet Kaur said she bought a top from the store on sale after a discount of 50% on print price. The MRP of the top was Rs 799, inclusive of taxes. After discount of 50%, the amount payable by her amounted to Rs 399. However, the store issued an invoice of Rs 419 by adding GST of Rs 19 even though MRP of the articles was inclusive of all taxes.
In the other complaint, Navpreet Singh said he bought a top from the same store, which was sold on sale with a discount of 50% on the print price. The MRP of the top was Rs 699, inclusive of all taxes. After giving a discount of 50%, the amount payable by the complainant came to Rs 349.50. However, the store issued an invoice of Rs 373 by adding GST of Rs 17.
A notice of the complaint was sent to store authorities for a version. They initially appeared through an advocate but subsequently absented. Therefore,on April 16, 2018, it was ordered to be proceeded against exparte. In both cases, the forum observed that the product tags clearly mentioned that the maximum retail price was inclusive of all taxes. However, despite this, the store went ahead and charged extra GST.
The forum held that the act of the store in charging extra GST from the complainants is tantamount to deficiency in service and unfair trade practice. The store was then directed to pay Rs 2,000 to each as compensation for deficiency in service and causing mental agony and harassment. They were also directed to pay Rs 1,000 as litigation cost to both complainants.
Store authorities have been asked to comply within 30 days of the date of receipt of its certified copy, failing which they will have to make payment of extra GST charged and compensation along with 12% per annum interest from the date of the order.
Source- Times of India.