Charging Rs16 extra on product costs retail store Rs 4,000

LUDHIANA: Charging Goods and Services Tax (GST) on a reduced product has price a retail retailer dear because the District Consumer Disputes Redressal Forum has imposed a wonderful of Rsfour,000 on it for overcharging Rs16.92 from a resident of Jalauli in Panchkula. Of the entire wonderful, the forum — comprising president GK Dhir and member Vinod Gulati — asked Firstcry.com Mahindra Retail Private Limited, Mall Road, beside Surya Tower, to pay Rs2,000 as reimbursement for psychological harassment, and an equal amount as litigation charges to customer Ram of VPO Jalauli in Barwala tehsil of Panchkula district.

The complainant, in his complaint to the forum on 13 March said he had purchased one product from the shop on 12 February this yr through paying an amount of Rs157.92 via an invoice. The most retail worth of the product, inclusive of all taxes, was Rs175. After cut price of Rs34, the discounted worth payable was Rs141. But the seller charged GST on the price of 12% of Rs16.92 charged from him. That apply of charging GST on discounted worth is alleged to be an ‘unfair industry apply’, and that is why the complainant sought refund of excess charged GST amount of Rs16.92, at the side of reimbursement as a result of psychological and bodily harassment of Rs20,000, and litigation expenses of Rs10,000. The respondent was ex-parte in this case, as a result of no person became up for it.

The forum noticed that the act of charging VAT/GST on discounted MRP (inclusive of all taxes) has been deprecated through the National Consumer Disputes Redressal Commission, New Delhi. This apply of charging VAT was ‘unfair industry apply’.

The forum noticed that in view of the legislation laid down in cited cases, it was obvious that an unfair industry apply was followed through the opposite party (vendor) in charging GST of Rs16.92, after giving a cut price at the MRP. It added that in view of the adoption of this unfair industry apply, the complainant suffered some psychological harassment and agony, and as such, he was entitled to reimbursement, at the side of litigation expenses. The forum directed that the additional amount charged be refunded at 6% hobby in line with annum from the date of purchase, but even so asking it to pay reimbursement and litigation expenses.

UNFAIR TRADE PRACTICE


* Complainant Ram said he had purchased the product from the shop on 12 February this yr.


* The most retail worth of the product, inclusive of all taxes, was Rs 175.


* Charging GST on a reduced product is alleged to be an ‘unfair industry apply’.


Charging Rs16 extra on product costs retail store Rs 4,000 Charging Rs16 extra on product costs retail store Rs 4,000 Reviewed by Kailash on June 14, 2018 Rating: 5
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