Overcharging and violation of MRP rules by a hotel Sagar(GSTIN: 29BAMPS9283C1ZI) in Udupi.

G

GKR

New member
Hotel Name
hotel Sagar(GSTIN: 29BAMPS9283C1ZI) in Udupi.
Website Name
there is no website
Customer Care Number
08202529452
Loss Amount
1560
Ratings
5.00 star(s)
Opposite Party Address
Kadri,
Mangalore
Respected Sir/Madam,
I would like to bring to your notice an incident of overcharging and violation of MRP rules by a hotel in Udupi.

On 16/01/2026, I visited Hotel Sagar, Maruthi Veethika, Udupi (Bill No: 10034) : GSTIN : 29BAMPS9283C1ZI and ordered the following items:

  • 1 Prawns Biryani
  • 1 Fish Biryani
  • 1 Pomfret Fish Fry
  • 1 Butter Milk (small glass)
  • 1 Thums Up (small Glass bottle)
They charged ₹1560 in total. For example, Thums Up MRP is ₹20, but they charged ₹30, which is clearly higher than the printed MRP. Similarly, other items were billed at excessively high rates without any displayed menu pricing, which amounts to unfair pricing and consumer exploitation.

This violates the Legal Metrology Act and Consumer Protection Act, which prevent traders from selling pre-packaged goods above MRP.

I request your kind intervention to:

  1. Inquire into the matter,
  2. Take appropriate action against the hotel for overcharging, and
  3. Ensure such practices are stopped to protect consumers.

I have attached the bill copy for your reference.

Thanking you in anticipation of necessary action and compensation by the restaurant.

@ GST/ Tax department : Overcharging Above MRP, Unfair Trade Practice – Hotel Sagar, Udupi (GSTIN Issue & Missing CGST/SGST)

 

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Hello @GKR

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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