Hyderabad Hotels In Trouble For Charging over MRP, GST

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Hyderabad: Telangana Legal Metrology Department booked four restaurants for dual pricing and related violations on Friday. The officials noted that SC granted dual pricing does not apply to all restaurants in the city.

The restaurants are - Pista House, Sangeetha A Lounge Restaurant & Bar, Chaitanya Family Restaurant & Bar, and Hotel Kuchipudi Palav Restaurant. These restaurants were found levying GST over MRP despite the MRP being inclusive of all taxes. The complaints against the restaurants were filed by K Sai Teja, head of social media and public relation at Forum Against Corruption (FAC), a city-based activists group, a leading web portal reported.

They are booked under various sections of the Legal Metrology Act, 2011. Officials told a leading web portal that these hotels could be levied fines up to Rs 25,000 for their first offence and could be fined higher up to Rs 50,000 for their second offence.

The restaurants in its defence say that the they can practise dual pricing as the SC has granted it, but the Legal Metrology Department defends that dual pricing is only for institutional consumers who buy packaged commodities bearing a declaration ‘not for retail sale’. Such products are only for the use of institution and not for commercial purpose.

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