Applicability of GST on Service Charges levied by Restaurants Industry
- Blog|News|GST & Customs|
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- By Chetan Kulasri
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- Last Updated on 20 April, 2022
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Amit Kumar – [2022] 137 taxmann.com 269 (Article)
The restaurant industry considers “Service Charge” as a fee that is levied over and above the price of the food and drink for the additional convenience of serving inside a restaurant. As per the GST law, GST will be charged on the ‘transaction value’. Transaction value is the price actually paid or payable for the supply of goods/services between un-related parties. In this article, the author has analysed the levy of GST on the service charge collected by the industry in light of judicial precedents.
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