Many restaurants charge their customers service charge in addition to GST. Unlike GST, there is no law which authorizes or requires the restaurants to charge the customers service charge and that too at a very high rate of 10 per cent. Service charge is the creation of the management of restaurants to make extra profit.
The only service that restaurants provide is serving the customers at the table which is already factored in the pricing of the dishes along with other overheads. Charging extra by way of service charge is therefore a very wrong and unethical practice. Customers should refuse to pay service charge. As far GST is concerned, only those restaurants which do not come under GST composite scheme can charge GST in the bill. The concerned government authority should look into these malpractices.
