JW Marriott Investigated Over Expensive Bananas

Uh oh. It looks like the JW Marriott Chandigarh may regret how much they charged someone for bananas.

Indian actor Rahul Bose took to Twitter this week to share his outrage over the price he was charged for bananas at the JW Marriott in Chandigarh, India. He was at the hotel’s gym working out, and asked for two bananas.

He was then asked to sign a bill for them, and it came out to 442.50INR. The bill shows that he was charged 375INR for a “fruit platter,” plus 18% — that includes a 9% CGST and 9% UTGST. Using today’s exchange rates that’s ~6.40USD for two bananas.

He posted a 30+ second video to Twitter, and used hashtags #goingbananas, #howtogetfitandgobroke, and #potassiumkings.

That does seem excessive, though at the same time it seems to me like this might just have been a situation where they didn’t have anything to ring the charge up under, so he got charged for a “fruit platter,” whatever that is. You’d think they could have just given him a couple of bananas, but nope.

Anyway, this hotel is now being investigated by the government. Why? Not because of the expensive bananas, specifically, but rather because they charged GST on this. Of course this was only brought to light because of the price of bananas.

Business Today reports that a high level probe has been called by the city administration regarding this issue.

The Chandigarh Deputy Commissioner and Excise and Taxation Commissioner Mandip Singh Brar initiated the investigation into the “illegal and exorbitant charge of GST” by the hotel:

“Taking cognisance of the video and bill posted by the actor, I have ordered an investigation. I have directed Assistant Excise and Taxation Commissioner (AETC) Rajeev Chaudhary to conduct a thorough probe on how the hotel had charged GST on fresh fruits. Strict action will be taken if found guilty.”

So the issue isn’t the price as such, but rather the fact that the hotel charged GST on fresh fruit.

Based on doing some research, it would appear that bananas aren’t subjected to GST in India. The GST for fruit varies from 0% to 12% based on the type of fruit.

So it’s questionable whether the ordinary “fruit platter” would be subjected to the tax, since it’s possible that it includes nuts or some other fruit that would be subjected to GST.

Nonetheless, the hotel has quite a situation on their hands, all arising from bananas costing over $3 each.

The hotel’s Twitter account, @jwmarriottchd, has protected Tweets as of this point. Hah.

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Shantanu Rawat Guest

Latest Update Hotel was charged Rs 25000 (USD 357) by indian tax authority for over collection of tax. No question on overpricing. Though authority did not gave requested time to hotel to give explanation. Hotel is a Victim of Bad GST Consultancy, Bad Media Coverage and Bad ERP System Indian GST (Goods and Service Tax) is Complex. Fruit Platter has GST rate 0% (assuming all fresh fuits under HSN 803), Food served under Room Service has GST rate @ 18 % (SAC 996332). On which rate Hotel should charge GST? Because of lack of clarity on GST Rates, highest rate is adopted by service provider. Both are punishable so businesses adopt comparatively better option - Overcharging. If JW Marriott would have undercharged. Payable amount would be all pending GST amount which was not charged from customer and penalty. Now since they overcharged they are paying only penalty. In this case Hotel`s TAX Consultant should come ahead and take responsibility for advising hotel about TAX Code and Rates. Bad Media Coverage Many Big Media houses making wrong head lines like "JW Marriott Chandigarh fined Rs 25,000 for over-charging actor Rahul Bose for two bananas" - FirstPost Its spreading absolutely wrong message. Its not overcharging revenue from Customer. Its over collecting of tax to give Indian government.Further customer can get tax credit also. Sadly Hotel don`t have media management to address this. Hotel did not get requested time to give explanation. Hotel`s Media consultant should come ahead and express that, "There is no claim on Hotel`s overcharging. Claim is on Hotel`s over collection of tax. Since we are not tax expert, we did as GST Consultant advised. Now We will obey whatever government official advise and order." Bad ERP System Bill from system was not with proper details which is resulting hotel`s bad name for overcharging.

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Lou Guest

Cheap fool. Stay at a Fairfield Inn next time.

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PJ Guest

I'm torn between viewpoints. On one hand, what did he expect? Literally anything at a high end hotel is crazy overpriced. $8 for a cup of coffee, $25 for a mediocre breakfast buffet, etc. He didn't HAVE to order them, and was paying for the convenience. On the other hand, I take issue with large businesses taking advantage of people. Do you REALLY have that much of a choice if your hotel is remote and doesn't have a lot of food available nearby, or if it's unsafe to walk around outside after dark? Food is not optional, and it seems inherently wrong to price-gouge a captive audience.

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Carlos Guest

He requested room service at a high end Western hotel. Pretty reasonable charge in my view. No sympathy here for him.

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snic Diamond

@Archer: "I’d be skeptical of eating any fruit in a country like India." You are being ridiculous. Like many other fruits, the edible part of a banana is protected by a skin. Even if the skin is dirty, the fruit inside is clean. In fact, fruit in India is often far superior to what we get in supermarkets in the western world. It's fresher, and the tropical climate means the flavor tends to be better. I've eaten all sorts of fruit in India and all over the developing world without any problem at all, and I consider sampling fruit I can't get at home to be one of the pleasures of traveling in the tropics. You are missing out.

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