Charging GST on discounted shirt costs Mohali bizman dear

Tribune News Service

Mohali, October 2

Charging Rs 43.84 as GST from a customer on a discounted item has cost a Mohali-based businessman dealing in readymade garments dear. The District Consumer Disputes Redressal Forum has directed the businessman to pay Rs 4,000 as compensation for mental agony and harassment to the customer.

Apart from this, the forum also directed the opposite party (OP), COBB Apparels Private Limited at Phase 7, Mohali, to refund the GST amount along with six per cent interest to the customer, Kulwinder Singh, also a resident of Mohali.

The complainant alleged that he had purchased a shirt having the MRP of Rs 1,349 (inclusive of all taxes) from the shop of the opposite party on November 10 last year. The invoice bill for Rs 920, including GST of 5 per cent of amount of Rs 43.84, was issued by the OP. The complainant alleged that he had raised objection regarding charging extra GST by claiming that cost of the shirt was inclusive of all taxes, but the opposite party claimed that it can charge extra GST as per notification issued by the Taxation authorities.

Charging extra GST on the discounted price is alleged to be an unfair trade practice, alleged the complainant, who then approached the forum for justice.

In his reply, the opposite party claimed that the complaint was filed on false and baseless allegations because GST can be charged as per the Government of India notification extraordinary Part - ii No.12 (dated April 12, 2017), which is issued in view of the Central Goods & Service Tax Act, 2017. It was also claimed that the charged amount was deposited in the account of the Government of India and as such the opposite party got no benefit by charging this GST amount.

After hearing both parties, the forum observed that charging GST extra on the discounted price was unfair trade practice. It was for the OP to disclose by display of a board or otherwise to every customer that GST would be charged extra on the discounted price.

The opposite party has been directed to refund the excess charged amount of Rs 43.84 with interest of Rs 6 per cent per annum with effect from November 10, 2017 till payment. The amount of compensation for mental agony and harassment and litigation expenses has to be paid within 30 days from the date of receipt of the certified copy of the order, held the forum.