A Bhopal restaurant was fined Rs 8,000 by the Consumer Forum for illegally charging Rs 1 GST on an MRP Rs 20 water bottle. The forum ruled it as an unfair trade practice after a 4-year legal battle.
In a recent decision, the Consumer Forum in Bhopal ordered a restaurant to pay a total compensation of Rs 8,000 to a customer for wrongly charging Rs 1 as GST on a water bottle.
This case started in October 2021 and finally came to a conclusion after almost four years.
The forum gave its decision in favour of the complainant, showing that overcharging, even by Rs 1, is not acceptable under consumer protection laws.
Back in 2021, a customer named Aishwarya went out for a meal with friends at a restaurant in Bhopal. After finishing the meal, when he received the bill, he noticed that he was charged Rs 29 for a water bottle.
But the printed Maximum Retail Price (MRP) on the bottle was clearly Rs 20. Out of the Rs 29 charged, Rs 1 was added as GST.
Aishwarya raised an objection to this, pointing out that the charge was more than the MRP and that GST was already included in the MRP of bottled water.
However, the restaurant staff refused to refund the extra amount and said,
“the billing was legal”.
Upset with the restaurant’s reply, Aishwarya decided to file a complaint with the Consumer Forum in Bhopal.
His lawyer, Pratik Pawar, represented him in the case and argued that the restaurant had wrongly collected ₹29 for a water bottle that had an MRP of ₹20.
He clearly pointed out that the restaurant had no legal right to charge Rs 1 extra as GST on top of the printed MRP.
On the other side, the restaurant’s legal team defended the billing. They argued that the higher price was justified because the customer was getting additional services.
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These services included a proper seating area, air conditioning, and service at the table. Their argument was that these services allowed them to charge above the MRP.
But the Consumer Forum did not accept the restaurant’s explanation. It rejected the restaurant’s claim and clarified that GST is already part of the MRP in case of bottled water.
Therefore, any extra charge as GST amounts to an unfair practice.
The forum held that,
“GST is already included in the MRP for bottled water.”
Hence, charging an additional Rs 1 as GST was considered “a deficiency in service”.
The forum then passed an order in favour of Aishwarya.
It directed the restaurant to return the wrongly charged Rs 1. Along with this, the forum also asked the restaurant to pay Rs 5,000 for causing “mental agony and lack of service”, and an additional Rs 3,000 towards “legal expenses”.
In total, the restaurant was ordered to pay Rs 8,000 to the customer.
This decision serves as a reminder that consumers have the right to not be overcharged, even by small amounts.
Charging more than the printed MRP, especially in the name of GST, is not allowed under the law.
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The Consumer Forum’s ruling upholds consumer rights and sends a clear message to businesses that they must follow legal billing practices.
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