Question : Charging Service Tax in Restaurants

(a) whether the Ministry is aware of the fact that several restaurants in Connaught Place area in Delhi are charging service tax on the bills generated for dining in the restaurant on the pretext that they have made a reference of it on the notice board at the entrance regarding the same;
(b) if so, the action being contemplated to stop this malpractice by the restaurants;
(c) whether the Ministry has received any complaints regarding this matter; and
(d) if so, the punitive action taken by the Government, State-wise and city-wise?

THE MINISTER OF STATE
CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(SHRI ASHWINI KUMAR CHOUBEY)

(a) to (d) : Department of Revenue has informed that, at present, Service Tax is not leviable on bills generated in restaurants. No such complaints of charging of service tax on the bills generated for dining in the restaurants in Connaught Place area in Delhi have been received. Further, with the launch of Goods & Service Tax (GST) w.e.f 01.07.2017, service tax has been subsumed under GST.

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