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Store fined Rs 4,000 for charging Rs 11.98 extra GST on apparel

A private store was fined of Rs. 4,000 for charging GST @ 5% on discounted price. Against which the customer has lodged the complaint seeking refund of the excess GST amount charged.

The fine was imposed on Lifestyle International Private Limited, at Rajguru Nagar in Ferozepur Road, a private store by the District Consumer Disputes Redressal Forum.

The customer, Rohit Sharma, resident of Pathanko, pointed out that he had purchased a product from the store on July 22, 2017 by paying an amount of Rs 251, whereas the maximum retail price (MRP) of the product, inclusive of all taxes, was Rs 599.

After a discount of 60% as per the store’s claim, Sharma was supposed to pay Rs 239.60, but he was charged GST at the rate 5% which amounted to Rs 11.98.

He claimed that charging GST on discounted price is alleged to be wrong and filed a complaint for asking the refund of the excess GST amount charged.

He also brought to the notice of the forum about the mental and physical harassment that he went through and demanded a compensation of Rs 25,000, and litigation expenses of Rs 15,000.

The forum has directed the store to pay up Rs2,000 as compensation for mental harassment and agony and an equal amount as litigation expenses to customer Rohit Sharma. Sharma had registered a complaint with the forum on February 1.

As against the complaint, the store owners argued in its written reply, that it was entitled to charge and collect GST after deducting the discount from the printed MRP.

“On the advertisement of discount offer, it was clearly mentioned ‘taxes extra’. The complainant might have missed to notice this fact. In case the complainant was not agreeing with the store charging the tax, then the invoice could have got cancelled. It held that the practice of charging tax on the discounted price of the products having MRP, inclusive of all taxes in this case is an unfair trade practice”.

Author: Niranjan Reddy

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