Restaurant Bill with Service Tax+VAT+GST

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Deal Subedar
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Hi Everyone,

Yesterday I went to a pub in gurgaon, and they charged me ₹1424 for including VAT+service tax + CGST+SGST.

Are these valid for my bill ? Or am I being fooled by the restaurant ? Here I am attaching the bill.

AdobeScan13-Apr-20241

https://r2.easyimg.io/a21fgjirf/adobe_scan_13-a...

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Deal Subedar Deal Subedar
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VAT is charged on alcoholic beverages and GST is charged on food.

Both are legal and ok.

Service charge is a grey area right now, usually changed at 10% of bill value

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Deal Subedar Deal Subedar
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Helpful Helpful
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They have charged Service Charges and not Service Tax. Service Charges go to the restaurant and are not a kind of tax.

Deal Subedar Deal Subedar
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VAT is charged on alcoholic beverages and GST is charged on food.

Both are legal and ok.

Service charge is a grey area right now, usually changed at 10% of bill value

Generous Generous
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VAT for Alcoholic Beverage

GST for Food

Service Charges are optional you can ask them to waive it off.

Deal Cadet Deal Cadet
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In India, the rules regarding service charges in restaurants have undergone some changes. Let me explain:

  1. Mandatory Service Charges:

    • Previously, many restaurants would automatically add a service charge to the bill. This charge was typically around 5% to 15% and was meant to compensate the staff.
    • However, in July 2022, the Central Consumer Protection Authority (CCPA) issued new guidelines. According to these guidelines:
  2. Displaying Service Charges:

    • The Delhi High Court has clarified that its interim order staying the CCPA guidelines should not be presented on the menu cards or display boards in a manner that may appear as if the charges have been approved by the court.
    • The court also suggested using terms like ‘staff charges’ or ‘staff welfare fund’ instead of ‘service charge’ to avoid confusion.
    • Restaurants must clearly inform consumers that the service charge is voluntary and optional4.
  3. Petitioners’ Arguments:

In summary, while service charges were once common, recent guidelines have made them non-mandatory. Customers now have the right to decide whether to contribute to staff welfare through service charges or not.


Court’s Stance:

  1. The court’s interim order allows restaurants to charge service fees, but it must be prominently displayed on menus or other places.
  2. The percentage of restaurant members imposing service charges as a mandatory condition is being assessed.
  3. The court emphasized that the order should not be presented as court-approved on display boards or menus.
  4. Restaurants misusing the stay order to legitimize service charges were cautioned1.


in short if service charge was 
not prominently displayed 
then u have case
Deal Cadet Deal Cadet
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#chatgptbot
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Deal Newbie Deal Newbie
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Alcohol consumption by humans has been kept as a state subject, on which (historically) the centre had no say.

Have not checked your image, but 'tax on tax' has always been a nuisance in India. It is mostly left unaddressed, till the hue and cry over it cannot be ignored without repercussions.
(Classic example: dividend distribution tax.)

Initially alcohol (served to patrons) was kept outside the ambit of GST.

The (restaurants hotels and to an extent the star rated hospitals) hospitality mafia/ hospitality lobby is almost as strong (if not stronger) than the builder mafia/ builder lobby
hence 'service charges' has always been a grey area and the authorities has always chosen to shrug and ignore or been a sissy and rollback any consumer friendly measures it ever took (so that the big businesses profit).

Not being from that state or area, I am not too sure of the contestability of THIS particular case, with respect to dual taxation and 'tax on tax' but if you can seek opinion from a law firm that regularly handles such matters it might help decide if you have a chance of legally taking them to task.
Although maybe alcohol too was brought under the ambit (of GST), but air-conditioned versus non air-conditioned and so many other permutations and combinations are added (to extort from consumers, without repercussions).
Deal Cadet Deal Cadet
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the authorities has always chosen to shrug and ignore or been a sissy and rollback any consumer friendly measures it ever took (so that the big businesses profit).

say no more
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Deal Subedar Deal Subedar
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The real crime here is you drinking Apple CIDER!!! for 890+ charges + taxes.

Sir, where are your priorities? joy
Deal Cadet Deal Cadet
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same same but difalant

good boys go to gudgaon

bad boys go to ...

that resturan in gudgaon is basically phocking its customers arsh in broad day light without kandam & loob

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Deal Lieutenant Deal Lieutenant
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It's service charge not service tax.

Payment is voluntary if you are happy with service not mandatory (negotiable in short)

Benevolent Benevolent
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You can reverse your service charges atleast

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