Gst On Service Charge On Eating In A Food Restaurant?


Anonymous
watch_later 1 year, 11 months ago

I have noticed that many restaurant charge service charge in invoice.

Whether GST is applicable and needs to be charged on service charge paid to a restaurant?

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1 Answer

Pulkit Sharma watch_later 1 year, 11 months ago
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Yes GST is to be charged on service charge.

GST is applicable on everything that is charged or supplied along with a taxable supply of goods or services or both.

Service charge is nothing but part of composite supply.

Service charge is for the service provided in hotel or restaurant. GST should be charged at the same rate applicable to tax rate charged on principal supply (here food).

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