Recently, a store in Elante mall Chandigarh was penalized for charging GST on MRP from its customers. Reportedly, the district consumer disputes redressal forum directed the store to pay a fine of Rs 3,000 to each of the two complainants.
MRP is inclusive of all taxes. Hence, it is not permissible to charge GST on it. But this was not adhered to by Unlimited in Elante Mall who charged Rs 17 and Rs 19 from two customers as GST on MRP. However, GST was not charged on total MRP but discounted MRP.
Harpreet Kaur was one of the two complainants. She had bought a top from the store at a 50% discount on the print price. The actual MRP was Rs 799 which post the discount came at Rs 399. However, the final invoice amount was 419. The store charged Rs 19 GST on discounted MRP. Similarly, Navpreet Singh was charged Rs 17 GST on a top with MRP 699 and discount of 50%. Navpreet Singh was handed an invoice of Rs 373 instead of Rs 349.50.
Following this, the two customers who had been duped decided to file a complaint. The store was accordingly notified. During initial hearings, the store authorities were served by an advocate. But later they did not appear for the hearings. Following subsequent absents, the forum ruled in favor of the complainants.
The forum observed that extra tax was charged by the store on MRP which already subsumed GST. Keeping in view the negligence in service and unfair trade policy, the store was directed to
Pay Rs 2,000 as compensation for the same to each complainant. Further, the store was also ordered to pay each of the two Rs 1000 as litigation cost.
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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.
