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Rahul Bose’s Rs 442 bananas cost JW Marriott Rs 25,000; GST penalty on 5-star hotel

Chandigarh’s JW Marriott was fined Rs 25,000 by the Chandigarh Excise and Taxation department for illegally levying 18 percent GST on fresh bananas served to actor Rahul Bose. 

The fine was levied on charging GST on the fruits as “Fresh fruits are tax-free under the GST regime”

Bose had twitted last Sunday showing the bill amounting to Rs 375 for two bananas and 18% GST was charged on the item. 

The Excise and taxation department has sent a showcause notice to hotel to explain the GST charge i.e. “since bananas, falling under the category of fresh fruits, are tax-free”. So, explain how come they charged tax on bananas but hotel management hasn’t come out with an official statement.

Following which, Marriott Hotel was fined Rs 25,000 for violating section 11 of CGST Act for illegal collection of tax on an exempted item.

Consumer Protection Council’s member and GST expert Ajay Jagga has written to Director Consumer Affairs requesting their cognizance in the issue.

According to the letter sent by Jagga, the issue of 18 per cent GST levied on fresh fruits (charged as fruit platter), which are tax-free, is one of the subjects in which an advisory from the Consumer Protection Council should be considered.

Author: Niranjan Reddy

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