Collecting GST Without Mentioning GSTIN On Receipt, Thrissur Consumer Commission Holds Bhagyaratna Kuries Liable
The Consumer Disputes Redressal Commission, Thrissur, comprising President Sri C.T. Sabu and Members Smt. Sreeja S. and Sri Ram Mohan R., held Bhagyaratna Kuries (India) Pvt. Ltd. liable for deficiency in service after it collected ₹7,800 as GST without mentioning the GSTIN and other mandatory tax details on the receipt.
It held that such conduct amounted to deficiency in service and unfair trade practice, though the absence of evidence that the GST was illegally collected meant that refund could not be ordered.
Facts:
The complainant, E.P. Sabu, was a subscriber of a kuri/chit conducted by Bhagyaratna Kuries (India) Pvt. Ltd., under Kuri No. 182. During the course of the transaction, the company collected ₹7,800 from the complainant under the head “GST.” The amount was entered manually on a printed receipt.
The complainant alleged that the GST amount had been unauthorisedly collected, despite the company having already collected a substantial amount towards foreman commission. He issued a lawyer's notice seeking redressal, but received no satisfactory response. He therefore approached the Consumer Commission seeking refund of ₹7,800, compensation and litigation costs.
The Commission issued notice to the opposite party. However, the company failed to file its written version within the prescribed period, and the proceedings were consequently set ex-parte against it.
Observation and decision:
The Commission observed that the company collected ₹7,800 as GST but the receipt did not mention the GSTIN or other mandatory tax particulars. It held that such collection lacked transparency and amounted to deficiency in service and unfair trade practice.
However, the Commission refused to order a refund of ₹7,800, as there was no evidence that the company was not GST-registered or had not deposited the amount with the Government.
The complaint was partly allowed, with the company directed to pay ₹10,000 compensation, ₹10,000 litigation costs, along with 9% annual interest from the date of filing until realization.
Case Number:CC/19/22
Case Title: E.Sabu v. Bhagyaratna Kuries (India) Pvt. Ltd.
For Complainant: Adv. A.D Benny
For the opposite Party: Advs. A. Devadas, P.A Muraleeraj & M.S Dipu