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Charging GST on MRP costs company dear

JALANDHAR: Charging GST on the MRP has cost Mandhana Retail Ventures Ltd, the licensee of Being Human brand, dear. A total of six complaints were filed by three persons against the company in this regard.

Charging GST on MRP costs company dear


Deepkamal Kaur

Tribune News Service

Jalandhar, March 7

Charging GST on the MRP has cost Mandhana Retail Ventures Ltd, the licensee of Being Human brand, dear.

A total of six complaints were filed by three persons against the company in this regard. The District Consumer Disputes Redressal Forum took a collective decision on the complaints and asked company representatives, who did not appear before the forum despite notices, to pay Rs 10,000 as compensation in each case. The total compensation amount in the cases is Rs 60,000 for charging a total of Rs 245.72 as GST on six products.

Anil Kumar, a resident of Sector 23, Chandigarh, has filed one such complaint. The complainant said, “I had purchased a product from the store on August 5 last year after paying Rs 367. The MRP of the said product was Rs 699, inclusive of all taxes, and the company had offered a discount of 50 per cent on the MRP of the product. After giving 50 per cent discount on the product, the price of the product came to Rs 349.50, but I was charged 5 per cent GST on the discounted price of the product. It amounted to Rs 17.48 and I had to pay Rs 367.”

Anil said he resisted after seeing the bill, but the company forced him to pay the final amount of Rs 367. The complainant said that his please went unheard and he was left with no option but to pay Rs 367.

He added that company representatives said once bill was prepared, consumer had to pay the net payable amount.

A notice on the complaint was issued to the company, but no one came to give reply and the matters proceeded ex parte.

Karnail Singh, president, District Consumer Disputes Redressal Forum, and Harvimal Dogra, a member of the forum, concluded that the MRP was inclusive of all taxes and retailer could sell the product at a price below the MRP because the MRP was the maximum retail price allowed for that commodity and not the actual price. They said even the retailer could reduce his margin from the MRP, but the retailer could not charge the price higher than the market price.

“So, charging above the MRP under the pretext of tax is an illegal practice and amounts to unfair trade practice. The complaint succeeds and the company is directed to refund the excess charges taken from the complainant in the name of GST i.e. Rs.17.48/- with interest at a rate of 9 per cent per annum from the date of purchase till realisation. The company is further directed to pay compensation for mental and physical harassment to the complainant to the tune of Rs 7,000 and is also directed to pay litigation expenses to the complainant to the tune of Rs 3,000,” they pronounced.

Similar orders have been pronounced in five other cases. Of the total cases, two of them were filed by the same complainant in which he was levied Rs 62.92 and Rs 24.98 extra as GST.

Two petitions were filed by Inderjit Singh of Hoshiarpur for levying Rs 63.70 and Rs 62.92. The sixth petition was filed by Tarandeep Singh of Dasuya.

Firm is licensee of Being Human brand

  • A total of six complaints were filed by three persons against Mandhana Retail Ventures Ltd, the licensee of Being Human brand. 
  • The District Consumer Disputes Redressal Forum took a collective decision on the complaints and asked company representatives, who did not appear before the forum despite notices, to pay Rs 10,000 as compensation in each case. The total compensation amount in the cases is Rs 60,000 for charging a total of Rs 245.72 as GST on six products. 

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