Press Information Bureau
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
05 FEB 2019 4:46PM by PIB Delhi
Levying of Service Charges despite GST
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.
OFFHAND
“Levying of Service Charges despite GST” has been, rightly so, declared ‘ not valid”. in consequence of public grievance aired and given wide publicity for sometime.. Plainly stated, that means such a levy, not being permissible /unlawful is objectionable, Premised so, whatever has been additionally said seems to lack in ‘courage of conviction’ on the part of the MInistry, in failing ‘to call a spade.a spade’, even afer pinpointing the attendant duplicity.
The point is why any such ab extra levy and collection ought not to have been declared ‘íllegal’, and to be visted by specifying as ac deterrent minimum a fine,- if and when brought to its at-hand field officer’s notice ; instead of forcing consumer to go to a consumer forum” with a complaint every time a recalcitrat hotelier or reastaurant owner asks customer , even if protested, and coerces him to pay up .
courtesy