Hotel GST CHARGE ON PACKAGED WATER BOTTLE OVER AND ABOVE MRP

vikramyadav6213

vikramyadav6213

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Hotel Name
HOTEL MEGA CITY
Website Name
NA
Customer Care Number
04023225969
Loss Amount
1
Ratings
2.00 star(s)
Opposite Party Address
2ND FLOOR, BASHEERBAGH x ROAD,3-6-335 TO 339, BADE USTAD GULAM ALI KHAN MARG, AVANTI NAGAR, BASHEERBAGH, HYDERABAD , TELANGANA -500029
Respected Sir,I visited Hotel Megha City, Basheerbagh, Hyderabad on 10/02/2026 and purchased food items along with a packaged drinking water bottle having MRP ₹20/- printed on it. The hotel charged GST separately on the water bottle over and above the MRP by including it along with food items in the bill. On questioning, the staff stated that charging GST additionally was a management decision. Charging any amount above the printed MRP on packaged drinking water, which is inclusive of all taxes, is illegal and amounts to unfair trade practice and deficiency in service under the Consumer Protection Act, 2019 and violation of Legal Metrology laws. I request refund of the excess amount charged, compensation for mental harassment, and directions to the opposite party to stop such illegal practice.
 

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Hello @vikramyadav6213

In India, restaurants can charge more than the Maximum Retail Price (MRP) for bottled items like water, soft drinks, or packaged snacks — but only under certain conditions.

Here's a breakdown of the legal position:​


When it’s Allowed:​

  • If the item is served as part of a service (e.g., in a restaurant, hotel, or cinema hall), the establishment can charge more than the MRP.
  • This is because it’s considered a service, not a retail sale — you're paying for ambience, seating, service, etc.

When it’s Not Allowed:​

  • If you're buying the item from a retail shop, takeaway counter, or standalone kiosk without any service attached, they must charge only MRP or less.
  • Overcharging MRP in these scenarios can be penalized under the Legal Metrology Act, 2009.

Supreme Court Ruling:​

  • In 2017, the Supreme Court of India ruled that charging above MRP is not illegal when it's part of a composite service, such as dining in a restaurant.

Summary:​

  • Dine-in at a restaurant: Charging above MRP is allowed.
  • Buying from a shop/kiosk/takeaway: Charging above MRP is not allowed.

Thanks
 
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