In a noteworthy consumer rights verdict, the District Consumer Disputes Redressal Forum in Bhopal has ordered a local restaurant to compensate a diner with ₹8,000 for levying an unlawful Goods and Services Tax (GST) of ₹1 on a bottled water purchase.
The case, stemming from an incident in October 2021, concluded after nearly four years of proceedings. The complainant, Aishwarya, had visited the restaurant with friends when he noticed an anomaly in the bill: he was charged ₹29 for a bottle of water clearly marked with a Maximum Retail Price (MRP) of ₹20. The extra ₹9 included an additional ₹1 labeled as GST.
When Aishwarya questioned the billing, the restaurant staff reportedly maintained that the charge was valid and refused to offer a refund. Unconvinced, he pursued the matter before the consumer forum.
Representing the complainant, Advocate Pratik Pawar argued that the restaurant had unlawfully inflated the cost of a pre-packaged product and misapplied tax. In defense, the restaurant contended that the higher price was justified due to the added amenities provided to patrons—such as air-conditioned seating, ambiance, and table service.
However, the Consumer Forum dismissed the restaurant’s reasoning. The bench held that bottled water is sold at an all-inclusive MRP, which already factors in applicable GST. Any additional charge under the guise of tax amounted to an unfair trade practice and a deficiency in service.
The forum directed the restaurant to refund the ₹1 collected as GST. It also awarded ₹5,000 to the complainant for mental harassment and deficiency of service, along with ₹3,000 towards litigation costs—totalling ₹8,000 in compensation.
Legal experts view the decision as a reminder to service providers to adhere strictly to consumer protection laws and refrain from exploiting pricing loopholes.
This ruling reinforces the principle that MRP is sacrosanct for packaged goods and highlights the consumer forums’ growing assertiveness in addressing even seemingly minor grievances.
