Swiggy slapped with Rs 20,000 penalty, food delivery app had charged Rs 4.5 GST on soft drink
Swiggy argued that it is only an intermediary and collects payment only on the behalf of the merchant. It also further responded that there has been no failure in the delivery services by Swiggy.
New Delhi: A penalty of Rs.20,000 has been slapped on the food delivery app Swiggy after it imposed Rs 4.5 GST on soft drink bottles in food delivery.
A resident of Panchkula in Haryana had filed a complaint against the food delivery app back in 2018. The person Abhishekh Garg had ordered garlic sticks from La pino’z pizza along with 3 bottles of soft drinks. Abhishekh was charged Rs.4.5 GST on the bottles of soft drinks though he was already paying the maximum retail price for the soft drink.
The District Consumer Disputes Redressal Commission at Panchkula slapped the app with a penalty of Rs.20,000. The consumer court held Swiggy responsible for charging above MRP, which is illegal as per the Consumer Goods Act, 2006.
Swiggy argued that it is only an intermediary and collects payment only on the behalf of the merchant. It also further responded that there has been no failure in the delivery services by Swiggy.
However, the District Consumer Disputes Redressal Commission said, “It is not that Swiggy is providing purely gratuitous service to its customers, without any consideration”. It further said that Swiggy serves as a link between the buyer and the seller, collecting orders and forwarding them to the seller/vendor for the purpose of delivery and that it is definitely “not a charitable organization.
As per the order of the District Commission, half the amount of the total penalty will go to the customer Abhishek Garg and the rest will be deposited in the account of the Haryana State Council for Child Welfare.