Can restaurants charge service charge and GST?

Can restaurants charge service charge and GST?

The restaurant deducts a 9\% CGST and 9\% SGST from the bill cost with no other subsumed charges. After the implementation of goods and services tax in India, all the aforementioned taxes are now subsumed into the one GST.

Do you have to pay 10 service charge?

No, it is not mandatory to pay service on the bill in London or anywhere in the UK.

Can we remove service charge?

If customers spot the charge and want it removed, the same is omitted, says the manager. “If you are not careful about the headings under which you are being charged, you could end up paying service charge, in addition to GST,” says Bangalore Bruhat Hotel Association secretary Subramanya Holla.

Do restaurants charge service charge?

The government in April 2017 issued guidelines on fair trade practices related to charging of Service Charge from consumer by hotel or restaurants. As per these guidelines, Service Charge is optional and the payment of it depends entirely upon the discretion of the consumers.

Why is there no GST on service charge in restaurant bill?

This is because the service charge component is distributed among the waiters and staff and the same does not form part of the revenue of the restaurant. However, now the GST shall be applicable on every component of the bill and which shall include the service charge as well.

What was the total tax being charged on your restaurant bill?

Service Charge (10\%) is added by the restaurants for their own pocket. It doesn’t go to the government. To conclude, the total tax being charged on your restaurant bill, before GST, was well above 20\%, that if we do not include 10\% service charge levied by the restaurants.

What is the rate of service tax under GST?

It is can be understood as a tip. The rate of the service charge is 10\%. Service tax is the indirect tax levied by the central government and collected in the manner as prescribed. From 1st July, the service tax has ceased to charge and shall be subsumed under GST. The rate of service tax was 15\%.

What is service charge in a restaurant?

Service charge is the charge levied by the restaurant on all the bills and the same is distributed between the staff and the waiters who work there. It is can be understood as a tip. The rate of the service charge is 10\%.