Bhopal (Madhya Pradesh): A customer in Bhopal won a case against a hotel after being charged extra GST on a water bottle on Saturday.
The water bottle had an MRP of ₹20, but the hotel charged ₹29. Additionally, they charged ₹1 as GST on top of that price.
However, the Consumer Commission focused on the ₹1 GST, ruling that GST cannot be charged separately on MRP, and ordered the hotel to refund that ₹1 and pay ₹8,000 as compensation.
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According to information, the customer had visited Moti Mahal Deluxe Hotel on Aishwarya Nagar Misrod Road with a friend for a meal. After receiving a bill of ₹796, he noticed that ₹29 was charged for a water bottle that had an MRP (Maximum Retail Price) of ₹20. On top of that, the hotel added ₹1 as GST.
The customer objected to the extra charge, but the hotel management did not agree to remove it. Frustrated, the customer filed a complaint with the District Consumer Commission.
The commission, led by President Yogesh Dutt Shukla and member Pratibha Pandey, ruled in favor of the customer.
They stated that GST is already included in the MRP, so charging it separately is not allowed. The hotel was ordered to refund the ₹1 taken as GST and also pay ₹8,000 as compensation for causing mental stress.
The hotel tried to defend its action by saying that their menu card mentioned prices with GST and that the customer was also paying for services like air conditioning and music. However, the commission rejected this argument, stating that overcharging on MRP is not allowed under the law.
This decision serves as a warning to businesses that they cannot charge extra GST on products sold at their printed MRP.
