Charging Panchkula man 4.50 GST on soft drink costs Swiggy 20,000

Told to pay 10,000 to complainant and an equal amount to Haryana State Council for Child Welfare by the District Consumer Disputes Redressal Commission, Panchkula
The consumer commission held Swiggy guilty of unfair and deficient services. (HT File Photo)
The consumer commission held Swiggy guilty of unfair and deficient services. (HT File Photo)
Published on Jul 09, 2021 01:01 AM IST
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By, Panchkula

Addition of 4.50 as GST against a soft drink ordered as part of a meal has cost Swiggy 20,000.

10,000 of the penalty, awarded by the District Consumer Disputes Redressal Commission, Panchkula, will go to the complainant, Abhishek Garg, a resident of Sector 2.

Garg had submitted that in August 2018, he had ordered food a cheesy garlic stick worth 144 and three soft drinks costing 90 through Swiggy, a food delivery mobile app.

He realised that he was charged 4.50 as GST for the soft drinks though he was already paying the MRP, which he contended was illegal under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006.

In its response, Swiggy claimed that it was only an intermediary and collecting the payment on behalf of the merchant, who charged all applicable taxes on the bill. So, there was no deficiency in service on its part.

However, the commission stated, “It is not...that Swiggy is providing purely gratuitous service to its customers, without any consideration.”

“Swiggy is an online shopping portal and works as a link between the buyer and seller to collect orders from consumers and forward those to the seller/vendor concerned for the purpose of delivery...It is certainly not a charitable organisation,” it held.

Terming Swiggy guilty of unfair and deficient services, the commission directed it to refund 4.50 along with interest @9% per annum with effect from the date of filing of the complaint till its realisation.

Apart from paying 10,000 to Garg for mental agony, harassment and litigation charges, the company has also been ordered to deposit 10,000 in the account of Haryana State Council for Child Welfare.

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