Charging Rs 24.98 GST on discounted price costs clothing store dear

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The District Consumer Disputes Redressal Forum has imposed a fine of Rs 4,000 on a clothing store for overcharging Rs 24.98 from a Chandigarh resident. The maximum retail price (MRP) of the product, inclusive of all taxes, was Rs 999. After a discount of 50% on the MRP of the said product, the discounted price payable was Rs 499.50, but GST at the rate of 5% of Rs 24.98 (CGST 2.5% amounting to Rs.12.49 and SGST 2.5% amounting to Rs.12.49) was charged from him.

Following this, the Dangwal filed for a refund of excess GST of Rs 24.98 along with compensation on account of mental and physical harassment of Rs 25,000 and litigation expenses of Rs 15,000. Moroever, Aeropostale Chawla Fashion Shop has been directed to pay Rs 2,000 as compensation for mental harassment and agony along with litigation expenses to the complainant, Parveen Dangwal of Sector 7-B in Chandigarh.

Dangwal stated in his complaint of October 29, 2018 that he had purchased a product from the seller on July 28 2017 by paying an amount of Rs 524. The complainant had produced the tag of the product and invoice of the money charged from him to support his complaint. The forum observed that in view of the law laid down in the cited cases as, discount on the MRP is given under the circumstance that MRP is inclusive of all taxes, so the act of deliberately charging VAT/GST and other taxes on the discounted total falls under unfair trade practice.

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