New Delhi: The controversy around the price of two bananas, after actor Rahul Bose posted on his twitter account and sent the social media into a frenzy, is not going to die down anytime soon. Also Read - CGST Officers Bust Fictitious Firms Operating Fake Input Tax Credit Racket in Delhi | Details Inside
The Federation of Hotel & Restaurant Associations of India (FHRAI) has made its stance clear on the issue of Rs 25000 penalty that was imposed by the Chandigarh excise and taxation department on JW Marriott hotel, for violation of section 11 of CGST (illegal collection of tax on an exempted item) in connection with actor Rahul Bose’s tweet over the price of two bananas served to him by the hotel. Also Read - GST Officials Detect Over Rs 830 Crore Tax Evasion by Pan-masala Manufacturing Unit in Delhi
“Hotel is not engaged in sale and purchase of fruits and vegetables but provides service of accommodation and restaurant service which include the supply of food and beverages to its guests,” said GS Kohli, vice president, FHRAI.
“Unlike retail store where bananas can be purchased at market price, hotels offer service, quality, cutlery, sanitized fruit, ambience and not the commodity alone. Coffee at ₹10 at roadside stall could be served at ₹250 in luxury hotel,” GS Kohli added.
FHRAI has clarified that the hotel hasn’t done anything illegal and reiterated that charging 18 per cent GST was legal requirement incumbent upon the hotel.