The District Consumer Disputes Redressal Forum imposed a fine of Rs 4,000 on a clothing store for overcharging Rs 24.98 from a Chandigarh resident. Aeropostale Chawla Fashion Shop was directed to refund the excess amount of Rs 24.98 with interest of 6% per annum from the date of selling the product till payment and also pay Rs 2,000 as compensation for mental harassment and agony along with litigation expenses to the complainant, Parveen. Parveen stated in his complaint that GST at the rate of 5% of Rs 24.98 (CGST 2.5% amounting to Rs.12.49 and SGST 2.5% amounting to Rs.12.49) was charged from him on the discounted MRP.
The forum observed that MRP is inclusive of all taxes, so the act of deliberately charging VAT/GST and other taxes on the discounted total falls under unfair trade practice. In the current case, it is obvious that the store adopted unfair trade practice by charging extra GST of Rs 24.98 on the discounted price of the product purchased by the complainant.
