Service tax in hotels not compulsory
Posted on: 22/Apr/2017 12:24:09 PM
The central government has clarified that the service tax in food shops is not compulsory. It has also released a clear guidance in this regard.
GST (Goods and Services Tax) would be implemented throughout the country from 1st July facilitating a uniform tax system.
The service tax has been revised to 18 percent in GST. This has led to doubts as to whether there would be an increase in tax on various other services. Especially if additional service tax is imposed on hotels, there is a very strong likelihood of food prices going up immediately.
Meanwhile, the Central Food Minister Ram Vilas Paswan has twitted that the hotels have been allowed to decide the service taxes on their own and Service Tax has not been made compulsory.
If the customer is not satisfied with the quality of services offered by the hotels, he/she can refuse to pay the Service Tax. The Minister has informed that a detailed central government guidance would be sent to the hotels and food shops asking them to impart training to the hotel staff regarding this.
