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Home / News / India /  Charging 4.50 GST on soft drink costs Swiggy 20,000

Online food delivery platform Swiggy has to pay a 20,000 fine for charging 4.50 GST on a soft drink.

According to a report in Hindustan Times, the case dates back to 2018, when a Panchkula-based man Abhishek Garg ordered a cheesy garlic stick worth 144 and three soft drinks costing 90 through Swiggy mobile app.

However, Garg later realised that he was charged 4.50 as GST for the soft drinks though he was already paying the MRP.

As a result, Garg filed a case against the Bengaluru-based firm under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006.

But Swiggy claimed that it was only an intermediary and was collecting the payment on behalf of the merchant, who charged all applicable taxes on the bill.

On the other hand, the District Consumer Disputes Redressal Commission, Panchkula dismissed Swiggy's statement, and said: "Swiggy is providing purely gratuitous service to its customers, without any consideration".

As per the daily, the consumer court added: "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 found Swiggy guilty of unfair and deficient services, and therefore, directed it to refund 4.50 to Garg along with 9% of interest per annum with effect from the date of filing of the complaint till its realisation.

The court ordered Swiggy to pay 10,000 to Garg for mental agony, harassment, and litigation charges. It also asked the food delivery platform to deposit 10,000 in the account of the Haryana State Council for Child Welfare.

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