Business Standard

FHRAI defends Rs 442 price for two bananas

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Press Trust of India New Delhi
Hotel federation FHRAI has defended JW Marriott Hotel Chandigarh, which had billed Rs 442 for two bananas recently to Bollywod actor Rahul Bose, saying that it has not done anything "illegal".
The Federation of Hotel & Restaurant Associations of India (FHRAI) in a statement has also reiterated that charging 18 per cent GST was a legal requirement incumbent upon the hotel.
"Chain hotels have presence across several cities and follow standard operating procedures (SOPs). We need to understand that the hotel is not engaged in the sale and purchase of fruits and vegetables but it provides service of accommodation as well as restaurant service which includes supply of food and beverages to its guests," said the federation.
Unlike a retail store where bananas can be purchased at market price, a hotel offers service, quality, plate, cutlery, accompaniment, sanitised fruit, ambience and luxury and not the commodity alone," said FHRAI Vice President Gurbaxish Singh Kohli.
He further said that a coffee available at ten rupees at a roadside stall could be served at Rs 250 in a luxury hotel.
The FHRAI also clarified that the hotel has done the right thing by charging 18 per cent GST on food and beverages served in the hotel premises.
However, the apex hospitality body has issued an advisory to its members on ways to handle such situations where a guest may have ordered eatables, including fruits from outside the menu.
Recently, a video went viral in which Rahul Bose was seen complaining about five-star hotel JW Marriott, Chandigarh for billing two bananas for Rs 442.
The price of the banana included GST, which is incidentally not applicable on fresh fruit and vegetables.

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First Published: Jul 30 2019 | 10:45 PM IST

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