Fined for charging GST over MRP
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 servicetax (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 adiscountof 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.TheMRP of thetop wasRs699,inclusiveof 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 Rs17.
A notice of the complaint was sent to store authorities for a version. They initially appeared through an advocate but subsequently absented. Therefore,on April16, 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 GSTcharged and compensation along with 12% per annum interest from the date of the order. more
In one of the complaints, Harpreet Kaur said she bought a top from the store on sale after adiscountof 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.TheMRP of thetop wasRs699,inclusiveof 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 Rs17.
A notice of the complaint was sent to store authorities for a version. They initially appeared through an advocate but subsequently absented. Therefore,on April16, 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 GSTcharged and compensation along with 12% per annum interest from the date of the order. more
Viewed by 1915
View all 25 comments Below 25 comments
Thanks to the quick action taken by the Consumer Court. Usually, they take more than a years to complete their hearing. more
Sep 05
The penalty levelled is very small. It should have been leveled as a punishment for the crime that the businessman/firm had charged not only to the complainant but to other buyers as, and it should have been a deterrent. The complainant can file an appeal before the higher court/State Commission. Already the National Commission has done in a case of biscuit seller and example set. It may be mentioned that the Penalty comprises 'punishment' for the crime committed and 'compensation' to the unidentified consumers as well the complainant for litigation costs. more
Aug 31
It should be treated as misappropriation (fraud) as the seller is collecting fund ias it is being collected on behalf of the Government and pocketing the same. Hope GST counsel may be listing. Because every buyer can not go to Consumer court for pity amount. more
Aug 28
