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Service Charge is neither a tax nor it is collected by Government -Ravnit Singh Khurana, Deputy Commissioner GST WING

New Delhi: 03/12/2016

While answering the queries at a radio program(aired on FM rainbow today), Mr Ravnit Singh Khurana, DC said service charge is not a tax and it is not collected by government.

He also said that- Service Charge is equivalent to Tip which restaurant owner do charge on bill amount.

Government charge Service Tax and VAT only.

This radio program was organised by Aakashwani New Delhi for awareness on- “Goods and Service Tax”.  Click to See full Report.

GST will bring more clarity and awareness for end- user to understand the invoice and this types of charges. However awareness of Public at large also require.

He clarified this when a caller asked about this charge.

Restaurant bill invoice format

A sample invoice format, for reference only from GSTSEVA archives


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