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Explain why Rahul Bose paid GST on tax-free bananas: JW Marriott told

After a tweet by the actor telling about how he was charged the whopping amount of Rs 442.50 for two fresh bananas, Chandigarh Deputy Commissioner and Excise and Taxation Commissioner Mandip Singh Brar had ordered an investigation into the matter.

Written by Hina Rohtaki | Chandigarh | Updated: July 27, 2019 11:20:40 am
rahul bose, rahul bose bananas, gst on bananas, rahul bose bill, jw marriott, actors gets high bill, actor hotel bill, tax on fruit, indian express The department has sought a reply from the hotel in Sector 35 on how tax was charged on an item which is tax-free.

The Excise and Taxation department on Friday sent a show-cause notice to JW Marriott hotel for levying GST on two bananas for which actor Rahul Bose had to pay Rs 442.50.

The department has sought a reply from the hotel in Sector 35 on how tax was charged on an item which is tax-free.

Assistant Excise and Taxation Commissioner (AETC) Rajeev Chaudhary told Chandigarh Newsline, “We have issued the show-cause notice and sought a reply from them. Bananas which come under the category of fresh fruits are tax-free. So, in the show cause we have asked them to explain how come they charged tax on bananas.”

After a tweet by the actor telling about how he was charged the whopping amount of Rs 442.50 for two fresh bananas, Chandigarh Deputy Commissioner and Excise and Taxation Commissioner Mandip Singh Brar had ordered an investigation into the matter.

A three-member team, constituted by the excise and taxation department, had on Thursday confiscated all the relevant records.

The show-cause notice has been sent after analysing the seized records.

ALSO READ | Cheaper or even free: That is how much two bananas could have cost Rahul Bose

The hotel has been given time till Saturday to file the reply. “We have also called them for a personal hearing before giving out a decision. The hearing will take place before judicial officer,” the AETC said.

However, no official statement has been released by the hotel authorities. Despite repeated attempts, there was no reply from the hotel authorities.

The probe on whether the hotel is depositing tax with the government is also going on. Sources in the department said that if found guilty, the hotel will be penalized.

Meanwhile, member of Consumer Protection Council and GST expert Ajay Jagga wrote to Director Consumer Affairs seeking to take cognizance in the matter. The letter written by Ajay Jagga said, “The recent controversy of charging of GST @18% on fresh fruits (charged as fruit platter), which are tax-free, in a high class hotel is one of subject in which an advisory from the Consumer Protection Council, should be considered.”

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