Ministry of Consumer Affairs, Food & Public Distribution
Levying of Service Charges despite GST
Posted On: 05 FEB 2019
Charging of Service Tax is not valid. The Government in April 2017 issued guidelines on fair trade practices related to charging of Service Charge from consumer by hotel/restaurants. As per these guidelines, Service Charge is optional and payment of it depends entirely upon the discretion of the consumers. An aggrieved consumer can approach a consumer forum of appropriate jurisdiction for redressal of his grievance related to charging of service charges by hotels and restaurants.
This information was given by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri C.R. Chaudhary in Lok Sabha today.