Consumer forum fines Brand Factory for GST on discounted clothing item

On March 28, a Hyderabad district consumer forum ordered clothing retailer Brand Factory to pay over Rs 15,000 ($206) to a consumer named S Umesh Kumar for wrongfully charging goods and services tax on a discounted item and charging for a branded carry bag. Kumar purchased a pair of jeans at Brand Factory at a 40 per cent discount. However, he was charged additional GST on top of the discounted price when the original price was GST inclusive. Kumar was also charged Rs 10 on a branded carry bag, which he stated he was only informed of at the checkout.

Lately, many consumers have complained about being charged for branded carry bags while businesses have been accused of charging incorrect GST on discounted items. Other brands which have faced similar fines include footwear brand Bata India which was fined in numerous states for charging for branded carry bags in 2019.

Traders’ bodies, including the Confederation of All India Traders, have criticized GST regulations for being unclear. CAIT recently urged the government to make the GST regulations easier for traders.