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What Are the Legal Charges Charged by the Restaurant?

Posted by jobseeker Chanchal Bhati | Approved
Answers (2)

1. Food & Beverage Price
- Charged as per the menu rate.
- Must be clearly mentioned.

2. GST (Goods and Services Tax)
- 5% for most restaurants (AC or non-AC).
- 18% if in luxury hotels (room ₹7500+).
- Must be shown separately on the bill.

3. Service Charge
- Not mandatory.
- You can refuse to pay if it’s added without consent.
- Governed by CCPA Guidelines (2022).

4. Packaged Items (like bottled water)
- Must be sold at or below MRP.
- No extra charges allowed.

5. Illegal Charges
- Charging both VAT and GST is not allowed.
- Charging above MRP on packaged goods is illegal.

Answered by jobseeker Vipra | Approved

Restaurants in India can legally charge the following:
1. Price of food items – As per the menu (MRP rules don’t apply to restaurant food).
2. GST – 5% GST for non-AC or takeaway; 18% for AC or with liquor license.
3. Service Charge – Not mandatory; customers can refuse to pay if added without consent.
Any extra charges must be displayed clearly. Hidden charges are not allowed.

Answered by jobseeker Lavanya Bhardwaj | Approved

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