FHRAI says hotel was right on charging Rahul Bose Rs 442 for 2 bananas

Federation of Hotel and Restaurant Association of India (FHRAI) has said that the hotel was right and not doing anything illegal on charging Rahul Bose Rs 442 for 2 bananas, according to news agency ANI. The federation added that charging 18% GST was legal requirement incumbent upon the hotel.

Federation of Hotel&Restaurant Assn of India: In light of incident concerning a guest being billed Rs.442 for 2 bananas at a five-star hotel,FHRAI has clarified that hotel hasn't done anything illegal. It reiterated that charging 18% GST was legal requirement incumbent upon hotel

— ANI (@ANI) July 30, 2019

The Vice President of the federation, GS Kohli said the hotel is not engaged in the sale and purchase of fruits and vegetables but provides service of accommodation and restaurant service which include the supply of food and beverages to its guests.

GS Kohli,Vice-Pres,Federation of Hotel&Restaurant Assn of India,on price of 2 bananas served to Rahul Bose: Hotel is not engaged in sale&purchase of fruits&vegetables but provides service of accommodation and restaurant service which include supply of food&beverages to its guests

— ANI (@ANI) July 30, 2019

Kohli further said hotel offers service, quality, cutlery, sanitized fruit, ambiance and not commodity alone, unlike retail store where bananas can be purchased at market price. He gave the example of coffee adding that coffee can be bought for Rs 10 at the roadside stall but in a luxury hotel it is served for Rs 250.

Vice-Pres,Federation of Hotel&Restaurant Assn of India: Unlike retail store where bananas can be purchased at market price,hotel offers service,quality,cutlery,sanitized fruit,ambience&not commodity alone. Coffee at ₹10 at roadside stall could be served at ₹250 in luxury hotel. https://t.co/CNmKGonjLk

— ANI (@ANI) July 30, 2019

A three-member team formed by the Excise and Taxation department visited the JW Marriott hotel in Chandigarh last week where the incident occured.

Assistant Excise and Taxation Commissioner (AETC) Rajeev Chaudhary was reported to have said that fresh fruits are tax-free items, whatever the case may be, and 'fruit platter' is a taxable item but the actor has been given fresh fruits and tax has been charged on it so the team is investigating all angles.