Restaurants are entitled to charge GST on service charge: MOF

The Minister of State, Shri Pankaj Chaudhary in the Ministry of Finance in a written reply to a question raised in Lok Sabha Stated, "Restaurants are entitled to charge GST on service charge."

GST on Service Charges

Reetu | Mar 21, 2023 |

Restaurants are entitled to charge GST on service charge: MOF

Restaurants are entitled to charge GST on service charge: MOF

The Minister of State, Shri Pankaj Chaudhary in the Ministry of Finance in a written reply to a question raised in Lok Sabha Stated, “Restaurants are entitled to charge GST on service charge.”

As per section 9 of the CGST Act, 2017, GST is levied on supply of goods or services on the value as determined under section 15 of the CGST Act, 2017. According to section 15 of the CGST Act, 2017, any amount charged by the supplier for anything done by the supplier in respect of supply of goods or services forms part of the value of service.

Supply of restaurant service other than at hotels/premises having room tariff above Rs 7500, is taxed at the rate of 5% without Input Tax Credit (ITC) and supply of restaurant service at hotels having room tariff above Rs 7500 per day is taxed at 18% with Input Tax Credit (ITC).

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
ITR Filing: Correct Mismatches between Form 26AS and Form 16 before filing Your ITR Tax Relief for Non-Filers: Income Tax Department exempted Non-filers from Higher TDS and TCS CBDT notifies 57 Types of Incomes and Expenses to be reported in AIS of Income Tax Portal Last Date for Filing SFT Coming Soon; Know all about SFT FEMMI urges NITI Aayog to Proposed ‘One Nation-One Mineral-One Tax’ PolicyView All Posts