BJP leader slams hotels for overcharging under GST

Mumbai: Chief spokesperson of Bharatiya Janata Party (BJP) Madhav Bhandari on Tuesday wrote to chief minister Devendra Fadnavis, asking him to take criminal action against hotel owners who are allegedly charging Goods and Services Tax (GST) separately, in addition to the billed sum, as well as shopkeepers who are charging GST, for packed food items, over and above their MRP. Mr Bhandari also blamed hotel owners for charging exorbitant rates and demanded a reduction in prices.

Meanwhile, the president of the association of hotel owners, AAHAR, Adarsh Shetty, denied Mr Bhandari’s allegations. Mr Shetty said, “We are charging tax over the bill as per GST council’s decision and it is legal.” He said, “We have not increased rates of hotel menu in two years. Rates of pulses are at a low level today, but those who are demanding to take action against us, should go to APMC (Agricultural Produce Market Committee) market and check prices of all food items and vegetables. Those have increased very much. Electricity bills, Municipal taxes, labour charges and other expenses have increased. Still we have not increased rates in two years.”

According to Mr Bhandari’s letter to the CM, after implementation of the GST in July this year, all hotel owners are charging GST over and above the billed amount and many shopkeepers also doing same, which is illegal.

The letter said that earlier, Value Added Tax (VAT) and service tax were included in the hotel bill. He blamed hotel owners for charging consumers exorbitant rates. The letter said that earlier, the hotel menu was inclusive of all taxes. He added that while hotel owners increased the rates on the food menu after an increase in rates of pulses, when Tur and Urad Dal touched more than '200 per kg, rates of pulses now are below '100 per kg and hotel owners have not reduced the rates.

Mr Bhandari demanded criminal action against hotel owners, as well as action under the Consumers Protection Act also.  

Meanwhile, AAHAR members on Tuesday met the state finance minister Sudhir Mungantiwar and welcomed the decision of the Union government of reducing tax rates on hotels. But they objected the withdrawal of input credit facility and demanded to restore it.