Swiggy fined Rs 20,000 for charging Rs 4.5 GST on Soft Drink

District Consumer Disputes Redressal Commission, Panchkula awarded Rs. 10,000 to complainant Abhishek Garg, as Rs 4.5 as GST charged against a soft drink.

Charging Rs 4.5 as GST for soft drinks though the complainant paid the MRP, was contended to be illegal under the Consumer Goods [Mandatory Printing of Cost of Production and Maximum Retail Price] Act, 2016.

Garg filed the complaint in August 2018; he ordered a cheesy garlic stick worth Rs 144 and three soft drinks costing Rs 90 through Swiggy.

Swiggy acknowledged and admitted the lapse and deficiency while charging GST on MRP items. Accordingly, half of the penalty will be deposited with the Haryana State Council for Child Welfare. In contrast, the other half will be awarded to Mr. Garg due to harassment and legal expenditure of the consumer.

“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 filing for dismissal of the complaint.

However, the forum concluded that Swiggy could not defend itself by saying that the food-ordering app has no role to play in the entire transaction of the sale and purchase of food between the complainant and the restaurant.

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