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Panjab University students decry overcharging, claim canteens levy unlawful GST on packaged items

Summary

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”.

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 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 a boys hostel resident.

Students have raised issues on inconsistencies in application of GST in mess canteens. Canteen workers admitted to charging GST exclusively on unpackaged goods, while others claimed that 5 per cent GST was levied on the entire bill. Additionally, a few hostel canteens do not maintain separate registers for packaged and unpackaged goods. “Maintaining two separate registers is too hectic, so I charge 2.5 per cent GST instead of 5 per cent,” admitted a canteen contractor.


Authorities step in

In response to the complaints, Panjab University Students’ Council (PUSC) President, recently conducted raids in hostel canteens and messes, including at girls hostel 1 and girls hostel 2, to address the students’ concerns. “The official university price list states that GST should only be applied where applicable, yet canteens are still charging it on packaged products like biscuits. This is a continuation of wrongful practices, which we are actively working against,” he said.

Most student leaders were unaware of these issues however, some student leaders argued that while raids create awareness, they serve merely as a publicity tool rather than a means of effective resolution.

“Real activism is missing. The PUSC lacks legal power to act on such issues; it operates as a glorified pressure group. Unlike student councils in other universities, which derive authority from their constitutions, the PUSC has limited influence. Earlier, members could escalate such issues to the Senate members, but with the Senate’s power deteriorated, its legitimacy has weakened. Provisions should be made to take legal action against those violating tender agreements,” said by the a person, who ran as an Independent for PUSC presidential candidate 2024.

The Dean of Student Welfare, Panjab University received complaints from girls hostel 10 and girls hostel 6. “They were not maintaining separate registers for taxable and non-taxable items. We contacted the mess and the wardens and these issues have not been raised again, therefore have been resolved. We also urged PUSC President Anurag Dalal to check that separate lists of taxable and non-taxable items are maintained in mess canteens during his raids of hostel canteens,” he said.

 

Source from: https://indianexpress.com/article/cities/chandigarh/panjab-university-students-overcharging-canteen-unlawful-gst-9865260/

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