A recent social media post by an Indian actor depicting an
invoice issued by a prominent hotel where he was charged INR 442
for two bananas created widespread furor among the public, industry
players and the tax authorities, with certain quarters challenging
the legality of levy of Goods and Service Tax
("GST") itself on the supplies made. The
invoice indicated the description of the sale item as a 'fruit
platter' and the cumulative rate of GST as 18%. The Central
Excise & Taxation Department also swung into action, served a
show cause notice to the hotel and imposed a penalty of INR 25,000
for levying GST on sale of bananas. According to the department,
serving bananas to the customer in a hotel room was an exempt
supply of goods, not involving any element of service.
