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Last Updated : Jul 26, 2019 04:40 PM IST | Source: Moneycontrol.com

Following Rahul Bose's tweet, excise team probes JW Marriott over exorbitant GST rates

Excise officials said it was not only a case of “illegal and exorbitant charge of GST”, but prima facie it was also a violation of the Consumer Protection Act, 1986 on the part of the hotel.

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Chandigarh’s Excise and Taxation Department’s three-member team seized all records in connection with the exorbitant GST rates charged by the JW Marriott hotel in the city, Business Today reports. This came after actor Rahul Bose expressed his displeasure over being overcharged for two bananas in a tweet.

City Deputy Commissioner and Excise and Taxation Commissioner Mandip Singh Brar ordered a probe into the matter. A day after this, the team visited the hotel at Sector 35 in the city.

Excise officials said it was not only a case of “illegal and exorbitant charge of GST”, but prima facie it was also a violation of the Consumer Protection Act, 1986 on the part of the hotel.

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"Excise and taxation officers have seized all relevant records. The question here is that fresh fruits are tax-free items, whatever the case may be, and 'fruit platter' is a taxable item. But the actor has been given fresh fruits and tax has been charged on it so we are investigating all angles. We are even probing whether relevant tax is being deposited regularly with the excise and taxation department or not," Assistant Excise and Taxation Commissioner Chaudhary told Chandigarh Newsline.

While hotel management sources told Business Today that a GST of 18 percent can be levied by a five-star hotel on an item’s sale, GST experts differed. According to them, fresh fruits are non-taxable items as per law. In Bose’s case, he was given two bananas at Rs 442.50, which are otherwise non-taxable items.

Experts added that this case was, therefore, one of tax being levied on a tax-free item rather than a matter of the percentage of tax being levied.

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First Published on Jul 26, 2019 04:40 pm
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