Consumers against extra GST on discounted MRP by e-commerce sites: Survey

New Delhi, February 18

A majority of consumers surveyed for a poll have raised concerns over addition of GST on discounted prices of products being sold by e-commerce sites and retail stores, and urged the government to end the “unfair practice”.

According to Local Circles, a social engagement platform, as the sellers are charging Goods and Services tax (GST) on discounted MRP; it does not translate into the actual discount promised by them to the buyers.

Buyers felt that if a product is advertised at 50 per cent discount when the actual MRP is Rs 2,000 with GST, the product should be sold at flat Rs 1,000.

But, e-commerce sites are slapping a GST of 18 per cent on the discounted price and selling the product for Rs 1,180, thus pulling the actual discount to 41 per cent and not 50 per cent, as advertised.

Local Circles conducted the survey recently with a poll sample of 8,845 people to get their view on what they called “fleecing” by the e-commerce sites.

At least 27 per cent of the voters said they found GST being slapped on the discounted price on one to five occasions in one month, while 16 per cent said they noticed it on more than five occasions, the survey said.

While 30 per cent said they did not notice any such instance, the remaining 27 per cent said they are not sure about it.

As per the survey, many retailers have been advertising discount on the MRP, which is inclusive of taxes, but GST is added at final billing stage. — IANS