Fair Trade Practices | Service charge 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.

[Source: PIB]

Ministry of Consumer Affairs, Food & Public Distribution

Note: Guidelines on Fair Trade Practices Related to Charging of Service Charge from Consumers by Hotels/Restaurants

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