Visited a restaurant for dinner yesterday night. They served us with water bottle aquafina having mrp of 20₹. But on the bill they charged us for 35₹ per bottle. Rather than that, they even calculated GST on water bottlez which is having a mrp of 20₹ including all taxes. When i asked the management how they can charge more than mrp, they said that the hotels can charge like this, government has given permission to the hotels for this.
Yes. They can.
In a judgement passed on Tuesday on a special leave petition filed by the Federation of Hotel and Restaurant Associations of India against the Union of India, the apex court said when hotels and restaurants sell food and drinks, they also render a service, making it a composite transaction with composite billing and MRP rates cannot be insisted upon for such entities.