New Furniture Mart ordered to compensate for not disclosing GST amount

Hyderabad: The Rangareddy Consumer Disputes Redressal Forum has directed New Furniture Mart at Madeenaguda to pay a compensation of Rs 15,000 to a customer for not informing about the GST amount in the bill.

The complainant, Pratap Narayan Mishra, a resident of Hafeezpet, purchased furniture in August 2017, by paying Rs 29,000. He said that New Furniture Mart assured him of giving him the invoice at the time of delivery of the furniture.

“But even after the furniture was delivered the bill was not furnished. When contacted the showroom informed me that I have to pay an additional Rs 3,000 for VAT charges. I also noticed that the sofa’s armrest was partially damaged which was brought to the notice of the showroom, but in vain,” said Pratap Narayan and said that this amounts up to willful negligence on part of the firm.

The showroom submitted that the complainant agreed upon the price of the sofa and the applicable GST of 28 per cent (CGST 14 per cent and SGST 14 per cent) at the time of the sale. “The complainant paid Rs 29,000 through his credit card and assured that he will pay the balance amount against the delivery of the sofa set. At the time of the delivery of the sofa set, the tax invoice was also given to him. When we asked him to acknowledge the same and pay the GST amount of 14 per cent (Rs 8,120) he refused to make the payment,” the statement said.

They also submitted that the complainant wilfully damaged the hand rest of the sofa with a malafide intention to return the sofa set and get a refund.

After examining the facts of the case, the forum ruled that, “The showroom has raised a tax invoice for Rs 37,120 which included the GST component which was not informed to the customer beforehand.”

The forum also said that the onus to prove that there was no manufacturing defect on the purchased sofa set went to the showroom. The showroom had agreed to replace the sofa set but since the complainant demanded the refund which was refused the complaint was filed.

It was added that the complainant was entitled to the compensation due to the hardship, mental agony, and inconvenience caused by the opposing party by not honouring the insurance claim immediately.

The forum directed the showroom to pay a compensation of Rs 5,000 as they failed to mention GST charges in the quotation, return the Rs 20,880 after deducting the Rs 8,120 (GST amount) from the total amount of sofa, and pay Rs 10,000 towards the cost of litigation.