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Chandigarh

Posted at: May 25, 2019, 7:22 AM; last updated: May 25, 2019, 7:22 AM (IST)

Myntra told to pay Rs 2 lakh for charging GST on MRP

Tribune News Service
Chandigarh, May 24

The District Consumer Disputes Redressal Forum has imposed a penalty of Rs 2 lakh on Myntra, an online store, for charging extra GST of Rs 167.88 on the MRP (inclusive of all taxes).

“Charging extra GST on the MRP (inclusive of all taxes) is highly unscrupulous, unfair trade practice and as also a deficiency in service. To refund the excess amount charged is not the only remedy when unscrupulous and unfair trade practice is found. The forum is required to pass necessary orders so that such unscrupulous and unfair trade practices are discontinued,” observed the forum.

Therefore, the forum penalised Myntra Designs Pvt Ltd, Bangalore (opposite party number 1), and Shreyash Retail Pvt Ltd, New Delhi (opposite party number 2), with Rs 2 lakh, out of which Rs 1.50 lakh is to be deposited to the Poor Patient Welfare Fund, PGIMER, Chandigarh, and the remaining amount is to be deposited to the Consumer Legal Aid Account, Secretary, State Commission, Chandigarh.

According to complainant Ravi Inder Singh, he had puhased a women beige self-design sweater from the opposite parties through www.myntra.com in September, 2018. The MRP of the product was Rs 1,999, inclusive of all taxes. After giving a discount of Rs 600, the opposite parties asked him to pay Rs 1,566 which was paid through cash on delivery. However, he was shocked to see the invoice wherein the opposite parties had charged an additional amount of Rs 167.88 as the GST.

However, the opposite parties did not contest the complaint.

In a similar complaint, the State Consumer Disputes Redressal Commission had decided on September 1, 2015, that no one can charge more than the MRP and the MRP includes all taxes including VAT/other taxes. When MRP is inclusive of all taxes, then VAT/other taxes cannot be charged separately.

“It has been directed time and again that the companies have no right to charge extra GST/VAT when the maximum retail price is inclusive of all taxes,” observed the forum.

The forum also directed the opposite parties to refund Rs 167.88 charged as the GST from the complainant, to pay Rs 1,100 to the complainant as compensation for deficiency in service on their part and causing mental agony and harassment to him and to pay to the complainant Rs 1,000 as costs of litigation.

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