Restaurant Penalised for Overcharging GST on Water Bottle

Restaurant Penalised for Overcharging GST on Packaged Drinking Water

The Sambalpur District Consumer Court penalised a restaurant on VSS Marg in Sambalpur for charging GST on a packaged drinking water bottle, in violation of consumer protection regulations.

Details of the Incident

Sashank Sekhar Majhi, a customer at the restaurant, noticed discrepancies in the billing while paying his bill. He observed that the restaurant had charged Rs 35 for a mineral water bottle, whereas the Maximum Retail Price (MRP) printed on the bottle label was Rs 20. Furthermore, the restaurant included the water bottle in the food bill and levied GST on it.

Legal Action Taken

Following this incident, Majhi filed a complaint with the district consumer court, seeking redressal for the overcharge. The court, after hearing the case, ordered the restaurant to pay Rs 30,000 as compensation to Majhi for the overcharge, along with an additional Rs 10,000 towards court charges.

Legal Perspective

Anil Mishra, the petitioner’s lawyer, highlighted that as per the law, the MRP includes GST, and sellers cannot charge GST on top of the MRP. He pointed out that the restaurant not only overcharged for the water bottle but also levied GST on it, effectively claiming GST twice for the same item.

Conclusion

The ruling by the District Consumer Forum serves as a reminder to businesses to adhere to consumer protection laws and regulations, ensuring fair and transparent transactions with customers.