How GST on bananas and actor Rahul Bose's tweet cost JW Marriott dear

Last Updated: Tue, Jul 30, 2019 10:44 hrs
Rahul Bose

Chandigarh: High-end hotel JW Marriott seems to have learnt its lessons the hard way. Actor Rahul Bose, a guest at the hotel tweeted of how the hotel wrongly charged a GST (Goods and Services Tax) on a fruit platter.

The hotel charged a GST of Rs 67.50 on two bananas to the actor. And when the actor took to social networking site Twitter to complain of the tax, the hotel had to bear a fine of Rs 25,000.

The Chandigarh Excise and Taxation Department on Saturday imposed a penalty on the high-end hotel for the illegal collection of tax on a fresh fruit that is not taxable.

The penalty comes following Bose's tweet, saying: "You have to see this to believe it. Who said fruit wasn't harmful to your existence? Ask the wonderful folks at @JWMarriottChd"

In a video post, he showed a receipt that showed that Rs 442.50 was charged on a fruit platter that included a nine per cent Central GST of Rs 33.75 and a nine per cent Union Territory GST of Rs 33.75.

Assistant Excise and Taxation Commissioner Rajeev Chaudhary said the hotel has been penalised for illegal collection of tax on bananas which falls under the category of fresh fruits that are tax-free items.

The hotel has been imposed with a penalty of Rs 12,500 under Central GST (CGST) and the same amount under State GST (SGST).