Swiggy fined Rs 20K for levying Rs 4.5 GST on soft drink bottles

Amit Bathla

Tribune News Service

Panchkula, July 8

The District Consumer Disputes Redressal Commission, Panchkula, has imposed a fine of Rs20,000 on popular food delivery platform Swiggy for levying Rs4.50 GST on the MRP of three soft drink bottles from a city-based customer.

Firm had acknowledged the lapse earlier

The complainant had brought the matter to the notice of Swiggy through Twitter. The company then acknowledged the fact that the GST was charged on MRP of items and admitted its lapse and deficiency. On May 31, 2019, the complainant approached the district consumer forum with his grievance.

Of the total penalty, Rs10,000 will be deposited with the Haryana State Council for Child Welfare, while Rs10,000 towards harassment and legal expenditure to the customer who reported overcharging.

Swiggy will also have to refund the amount overcharged to the customer with 9 per cent interest.

On August 4, 2018, Abhishek Garg, a resident of Sector 2, had placed an online order on Swiggy’s app for two items — cheesy garlic stick and three 500ml Coca Cola bottles (each having an MRP of Rs30) — from La Pino’z Pizza, Panchkula.

According to the complainant, while placing the order, he realised Swiggy had charged an additional Rs4.50 GST (five per cent) on three 500ml bottles having total MRP of Rs90.

The bill amount, which was settled at Rs197, was paid by the complainant in cash.

The complainant brought the matter to the notice of Swiggy through Twitter. Following which, the company acknowledged the fact that the GST was charged on MRP items and admitted its lapse and deficiency.

Then on May 31,2019, the complainant approached the district consumer forum with his grievance.

In response, the company defended itself by saying it acts as an intermediary and a medium to restaurants/merchants to sell their products to users on its platform.

“All applicable taxes and levies, the rates thereof and the manner of applicability of such taxes on the bill are being charged and determined by merchants. So, there is no deficiency in service and unfair trade of practice on its part,” the company through its counsel had said, while praying for dismissal of the complaint.

The forum concluded that Swiggy can’t defend itself by saying that it has no role to play in the entire transaction of the sale and purchase of food between the complainant and the restaurant.