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How charging GST worth Rs 4.5 on soft drinks cost Swiggy Rs 20,000

With the penalty, Swiggy was also asked to refund Rs 4.50 with interest at a minimum of 9% with effect from the date of filing of the complaint

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Haryana's Panchkula resident, Abhishek Garg filed a complaint against Swiggy, a food delivering app for having been charged Rs 4.50 as GST against a soft drink that he ordered as a part of his meal. In return, Swiggy had to pay a penalty of Rs 20,000 in return.  

The penalty was awarded by the District Consumer Disputes Redressal Commission, Panchkula. Half of the penalty amount will go to the customer, Abhishek Garg and the other half will go to Haryana State Council for Child Welfare. With the penalty, Swiggy was also asked to refund Rs 4.50 with interest at a minimum of 9% with effect from the date of filing of the complaint to its realisation. 

Abhishek had submitted the complaint in August 2018, when he had ordered a meal of cheesy garlic stick costing Rs 144 and three soft drinks costing Rs 90 via Swiggy when he was charged Rs 4.50 as GST on the soft drinks, even though he was already paying the MRP. This, he argued, was illegal under the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006.

However, Swiggy responded to it by claiming that it acts only as an intermediary and there has been no lack of service from its end. To which the District Consumer Disputes Redressal Commission said, "It is not…that Swiggy is providing purely gratuitous service to its customers, without any consideration," The Hindustan Times reported. 

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