Panjab University students decry overcharging, claim canteens levy unlawful GST on packaged items
Hostel residents at the Panjab University (PU) have raised concerns over being charged an additional 5 per cent Goods and Services Tax (GST) on their month-end canteen bills, effectively leading to payments exceeding the Maximum Retail Price (MRP) of packaged goods. Since MRP is inclusive of GST, retailers are legally prohibited from levying additional GST on such products.
Students have accused canteen contractors of overcharging, non-compliance with metrology standards, and imposing unlawful charges. The hostel canteens supply both packaged items such as biscuits, chips, and chocolates, as well as freshly prepared food like paranthas and burgers. While some students accept GST on unpackaged food, they argue that applying it to MRP-inclusive products is unjust.
“I was levied a Rs 30 service charge and a 5 per cent GST on my total bill last month. Additionally, there was a discrepancy also,” said Nisha Sharma, a resident of girls hostel 2.
Lack of transparency
Many students have reported discrepancies in their monthly canteen bills, with differences ranging from Rs 30 to Rs 150 between their actual purchases and the final amount charged. When questioned, canteen employees attributed these discrepancies to “service tax and 5 per cent GST”.
Adding to their frustration, the hostel students receive only the total bill amount at the end of the month, without any breakdown of individual charges, taxes, or surcharges. Moreover, students are not provided with proper monthly invoices. “Due to a lack of transparency, many students don’t even realise they are being overcharged. If we protest, it can strain our relationship with the canteen owners. Some canteen workers behave rudely when we ask them the breakdown of bills,” said Arshdeep Singh, a boys hostel resident.
