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Restaurant Bill with Service Tax+VAT+GST
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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.
https://r2.easyimg.io/a21fgjirf/adobe_scan_13-a...
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.
https://r2.easyimg.io/a21fgjirf/adobe_scan_13-a...
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https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10013165
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
https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10013191
In India, the rules regarding service charges in restaurants have undergone some changes. Let me explain:
-
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:
- Hotels and restaurants are prohibited from levying automatic service charges.
- The service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.
- Customers have the right to file complaints if these guidelines are violated123.
-
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.
-
Petitioners’ Arguments:
- The petitioners (including the National Restaurant Association of India and Federation of Hotels and Restaurant Associations) argue that the service charge is a traditional charge that has been present for several years.
- They claim that the CCPA order is arbitrary and violates their right to trade under Article 19 (1) (g) of the Constitution.
- The court has asked them to state the percentage of members willing to inform consumers that the service charge is not mandatory4.
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:
- The court’s interim order allows restaurants to charge service fees, but it must be prominently displayed on menus or other places.
- The percentage of restaurant members imposing service charges as a mandatory condition is being assessed.
- The court emphasized that the order should not be presented as court-approved on display boards or menus.
- Restaurants misusing the stay order to legitimize service charges were cautioned1.
in short if service charge was
not prominently displayed
then u have case
https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10013201
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).
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).
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https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10013208
The real crime here is you drinking Apple CIDER!!! for 890+ charges + taxes.
Sir, where are your priorities?
Sir, where are your priorities?
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https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10013272
It's service charge not service tax.
Payment is voluntary if you are happy with service not mandatory (negotiable in short)
https://www.desidime.com/discussions/restaurant-bill-with-service-tax-vat-gst?page=1#post_10015718
You can reverse your service charges atleast
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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