Nitin Agarwal filed complaint against Brand Factory on Jun 6, 2019
We purchased a few merchandises from Brand Factory a division of Future Lifestyle Fashions Ltd. A **% discount on the MRP offer was going on at that time. At the time of billing, we were asked to pay an extra *% as GST on the discounted price. As, its universally known that the MRP and discounted MRP of any product includes all expenses towards selling it including the taxes/GST also. So, it was very unethical and forced activity on behalf of BF/FLFL to charge extra towards GST on discounted MRP from the customer.
According to the Consumer Protection Council, retailers are not allowed to levy additional GST after they have offered a discount on MRP. National Consumer Disputes Redressal Commission, New Delhi, in an order dated January *, ****, had said no tax can be
charged in the name of discount on MRP.
In state and District Consumer Disputes Redressal Forum, the cases in this regard are still being settled with forum reiterating the same stand.
Under the consumer laws, the MRP is inclusive of GST so whenever a discount is offered it is on MRP hence it is illegal to charge the GST on the discounted price. The consumer forum and national commission has passed many orders terming the practice as unfair and imposed penaltiesNow the need is that Consumer Protection Council should issue ban orders and enforce the same through Section *** of CrPC to save consumers.
So, this particular transaction we found that taking benefit of customers' ignorance, Brand Factory has committed two illegal & unethical practices, mentioned below:
*) charging the customer for a paper bag and
*) charging GST above the discounted MRP
both the above are entirely unethical and punishable.
So, I request a strict action be taken on BF/FLFL and also direct them to compensate us for the agony we face while buying merchandise from them and still pay for the carry bag and also pay extra as GST when it was already included in the MRP.
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