Brand Factory faces fines in Hyderabad

By

Isabelle Crossley

Published
Mar 30, 2021

A Hyderabad district consumer forum has ordered clothing retailer Brand Factory to pay over Rs 15,000 ($206) to a consumer for wrongfully charging goods and services tax on a discounted item and charging for a branded carry bag.

On March 28, the district consumer forum ruled that Brand Factory had to compensate complainant S Umesh Kumar. Brand Factory had denied the allegations of unfair business practices, but was unsuccessful, TNN reported. 
 
Kumar made the complaint after purchasing jeans at a 40% discount but being 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. 

“It [Brand Factory] should have informed the complainant about carry bag prior to selection of the goods but not at the payment counter as such the action of opposite party amounts to deficiency in service and also adoption of unfair trade practice on its part,” said the bench on Sunday, TNN reported.
 
The case is one of many instances where consumers have complained after being charged for branded carry bags and where 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.
 
A number of traders’ bodies, including the Confederation of All India Traders, have criticised GST regulations for being unclear. CAIT recently took action against GST regulations and urged the government to make amendments to make them easier for traders to adhere to.