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Journalism of Courage
Netizens are still going bananas over two over-priced fruits served by a Chandigarh hotel after actor-director Rahul Bose’s video went viral. After his compliant took social media by storm, Chandigarh Deputy Commissioner and Excise and Taxation Commissioner Mandip Singh Brar ordered an investigation into the matter. Finding the hotel guilty of incorrectly applying GST on fresh fruits, a fine of Rs 25,000 imposed on JW Marriott by Excise and Taxation Department for violation of section 11 of CGST (illegal collection of tax on an exempted item) in the matter.
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After Bose was asked to pay a whopping Rs 442.50, a three-member team constituted by the excise and taxation department on Thursday visited the hotel in Sector 35 of Chandigarh and seized all the relevant records.
The news of the hotel being fined triggered a series of jokes and memes online, with even official handles of police forces joining in. While some did observe that the issue is now done and dusted, others thanked the Mr and Mrs Iyer actor for bringing the issue into the limelight.
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While sources in the hotel management justified that a five-star hotel (where room rent is Rs 7,500 and above per night) can charge 18 per cent tax on the sale of an item, GST experts said that as per law, fresh fruits are not taxable at all and as per law, tax is to be charged only on a taxable item.
According to chapter 803/ HSN, bananas, including plantains, fresh or dried, come under zero tax rate and are exempted.
The Chandigarh Advisor has also ordered an inspection of all hotels and restaurants in the city to check if they were charging citizens for tax-free items.
