Skip to main content

All You Need to Know About GST Bill- If You Are a Big Foodie

About GST

After the GST regime started from 1st of July, there had been utter confusion and chaos among the people visiting the restaurants. I've seen people posting their 'Billfie' and welcoming the GST era but most of them are unaware of the taxes which are to be levied and this creates a loophole which amounts to looting of customers by the restaurants.

Some restaurants are having a field day by making customers pay extra in the name of GST. Lets just simplify the process for clearer understanding.

1) Service charge is not a tax. End of story.
Pre-GST, when you ate at a restaurant, as the bill, you had to pay for three prominent entries other than the price of the food items.
Those were the Service Charge, Service Tax and Value Added Tax (VAT).
Let's be clear here, Service charge is not a tax. A restaurant is not legally bound by the government to levy it.

2) What exactly is Service Charge ?
A Service charge is levied by the establishment on it own discretion. Usually, this is around 10% and its mentioned in the menu.
If you don't want to pay it, you don't have to. If the restaurants forces you to pay for it, you can sue the establishments in consumer court.

3) Local dhabas, open air cafes, small food joints, others.
There were two taxes i.e. Service tax and VAT, which now have been replaced by GST.

Now if you are in a Non-AC eatery that doesn't serve alcohol, you have to pay 12% as tax. It is made of Central GST (6%) and State GST (6%). These also apply for local delivery restaurants.

4) None of them have 28% GST slab.
If you are in an AC restaurant, whether it serves alcohol or not, you will have to pay an 18% tax. This is also applicable to Non-AC restaurants serving alchol.

You will have to pay 12% tax if the snacks sold from restaurants are pre-packed and pre-cooked. There are no structures under which you have to pay 28% tax for it.

5) Liquor gets VAT not GST
No GST is levied on liquor or liquor products. However, liquor will attract VAT, as imposed by State govt. So, if you order alcohol and food, you have to pay GST on food and VAT on alcholic beverages.
This is the broad structure of the taxes which are to be levied by the restaurants. Share for awareness and don't let the restaurants fool you in the name of GST.

Popular posts from this blog

Art of Cross Examination used by: Sr. Adv. Ram Jethmalani, Supreme court

“The issue of a cause rarely depends upon a speech and is but seldom even affected by it. But there is never a cause contested, the result of which is not mainly dependent upon the skill with which the advocate conducts his cross examination.”- Francis L. Wellman

When asked, the undisputed champion of cross-examination, Mr. Ram Jethmalanidescribed the art of cross-examination as the most effective weapon for the discovery of truth, provided the objective is not to confound a truthful witness but to extract truth from an unwilling witness.
The search for truth is the ultimate and idealistic end of all litigated matter in a court trial, and that truth is obtained due to the process of cross examination in the conduct of litigation.

Mr. Jethmalani understands that in India where large number of complaints and cases are filed in civil and criminal courts every day, delay in justice is common due to the rapidly growing pendency of cases in courts. Examination of witnesses plays an important …

Adv Ram Jethmalani :The Legend of the Bar; Started practicing at 17, still strong at 93.

Ram Jethmalani a True Legend in Providing legal services in India was born on 14th September, 1923 in state of Sindh in Pakistan. His Career in India is as a Lawyer and a Politician.

Virtuoso, flashy and argumentative is a portion of the words that can be usually used to portray Ram Jethmalani's life and career. Be that as it may, being a prestigious government official and legal counselor, additionally accompanies being included in numerous debates. In Year 1971, when he stepped into politics Mr. Jethmalani played an important role in campaigning against the ruling party, during the National Emergency period. Since then he has remained as the most popular figure in politics. Ram Jethmalani has been an important member of the Supreme Court Bar Association and Indian Bar Council for several years. At the age of 93, he is still an active political and Famous lawyer in India.

Early Life
Ram Jethmalani was born on the 14th September 1923 out of a residential community called Shikharpur,…

Harish Salve: India's eminent commercial lawyer

“Harish Salve”, the name is enough to define his stature in the field of independent practise in India. People view him as the one who could win the impossible for any client he took on. Mr. Salve was born at Warud in Maharashtra. His father, N.K.P. Salve was a renowned chartered accountant and founder of the Salve & Co. (chartered accountancy firm). His grandfather was a criminal lawyer. So, the law background in the family was already there to assist him through. As a young boy, Mr. Harish wanted to be an engineer but by the time he developed an interest in Chartered Accountancy. He started preparing for the exam. His father used to work with Nani Palkhivala, one day his father requested him to prepare a note on some complicated point in relation to the new provisions establishing the Settlement Commission which was related to some case, Mr Salve prepared the note and his father was that much impressed that he showed it to Nani Palkhivala, who after going through the note asked …

Advt.