Swiggy Penalized Rs 20,000 For Charging Rs 4.50 GST On Soft Drink! How This Happened? Is This Fair?

Yes just for the addition of Rs 4.50 as GST against a soft drink ordered as part of a meal has cost Swiggy Rs 20,000 as penalty.

How Did This Happen?

Under this development, the District Consumer Disputes Redressal Commission, Panchkula awarded  Rs 10,000 of the penalty which will go to the complainant, Abhishek Garg, a resident of the Sector. 

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

While ordering, he realized that he was charged Rs 4.50 as GST for the soft drinks although he was already paying the MRP.

According to him, it was illegal under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006.

Next, 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 in its response.

In short, Swiggy claimed that there was no deficiency in service on its part.

Also Read – 500,000+ Restaurants Will Challenge Swiggy, Zomato By Launching Their Own Food Ordering App!

What Is The Verdict?

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

Further 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 organization,”.

So, 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 realization terming Swiggy guilty of unfair and deficient services.

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