AHMEDABAD: A dispute over an extra Rs 15 charged as GST on a pair of discounted shorts in 2019 took nearly seven years to resolve, with a consumer commission directing retailer Brand Factory to refund the amount with interest and pay the customer Rs 4,000 as compensation.Chirag Jha had bought several items from Brand Factory’s Ahmedabad outlet in September 2019, including a pair of shorts with a maximum retail price (MRP) of Rs 599. The price tag stated that the MRP was inclusive of all taxes. After a 50% discount, the shorts were billed at Rs 299, but the invoice allegedly showed an additional Rs 15 as central and state GST, taking the final price to around Rs 314.Jha objected to the additional charge, arguing that the retailer could not levy GST over and above the discounted selling price when the price tag stated that all taxes were included in the MRP. He approached the District Consumer Disputes Redressal Commission, Ahmedabad (Additional), alleging unfair trade practice and seeking a refund and compensation.To support his complaint, Jha submitted purchase invoices, newspaper advertisements highlighting the retailer’s discount offers and the garment’s price tag.Brand Factory contested the complaint, maintaining that GST was payable on the discounted price under applicable tax laws. It also said the tax collected had been deposited with the central and state governments.The commission noted a discrepancy between the price tag, which stated that the MRP included all taxes, and the invoice, which showed GST being charged separately.It directed Brand Factory to refund the disputed Rs 15 with annual interest of 7%, calculated from the date the complaint was filed until the amount is paid. The commission also awarded Jha Rs 4,000 in compensation.Emphasising the importance of consumer protection, the commission observed: “Neither the seller nor the manufacturer company or service provider should be allowed to evade the legal obligation towards the consumer interest under the Consumer Protection Act.”
