Excise and Taxation Department on Saturday fined five-star hotel JW Marriott for charging ‘illegal tax’ on fruit platter which contained two bananas that cost Rs 442.50 to actor Rahul Bose. Now, the hotel has been fined Rs 25,000 and also been served a showcause notice to which they were supposed to reply on Saturday and also attend a perosnal hearing.As per the GST Law, fresh fruits are not taxable under the law. According to HSN/ Chapter 803, bananas, including plantains, fresh or dried come under zero tax rate and are exempted.
Rajeev Chaudhary, UT Assistant Excise and Taxation Commissioner (AETC) said, ”Yes, the hotel has been indicted for illegal collection of tax – because they charged tax on bananas which come under the category of fresh fruits that are a tax free item. Fresh fuits are not taxable as per law. We have imposed a penalty on them”.
Excise and Taxation Commissioner Mandip Singh Brar had ordered a high level investigation to probe GST on two fresh bananas in hotel JW Marriott following a tweet by the actor. Then, a three member team was constituted by the Excise and taxation department on Thursday that visited the hotel in sector 35. They seized all the relevant records.
Rahul, who is currently shooting in Chandigarh and is staying at a luxury hotel, took to Twitter to share a video and wrote, “You have to see this to believe it. Who said fruit wasn’t harmful to your existence? Ask the wonderful folks at @JWMarriottChd #goingbananas #howtogetfitandgobroke #potassiumforkings.”
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