Every business not only serves its customers well but also has to adhere to laws of the government and paying taxes to the government is one of the core activities of any business.

When you enter a restaurant or any other business, you will find a number called GST no. prominently displayed in the premises.

This number is unique i.e. no other business has the same number and the govt. recognises business through this number. This is like your Roll no. in the school. While 2 businesses (and two kids) can have same name, they can’t have same GST no. (or Roll No.).

Look at the bill above

In this bill, you have –

  1. Amount – This is what goes to the restaurant and it pays expenses through this money. It will also save some money after paying expenses, which is its profit
  2. SGST – State GST (Goods and Services Tax) – This money goes to the State govt. (Headed by Chief Minister) and is spent on the welfare of people.
  3. CGST – Central GST (Goods and Services Tax) – This money goes to the Central Government (headed by Prime Minister) and is spent on the welfare of people

You will also find the same GST no. that is displayed on the premises also on top of this bill.

Now look at this menu above. What do you see at the bottom of the menu?

Government Taxes and Service Charges Extra.

This means the taxes to be paid to the government (the ones discussed above) will be over and above the amount mentioned in front of the food item.

But there is something curious about service charges (as against tax). This amount is not paid to the government and is retained by the restaurant to be given to service staff (waiters etc.) in the restaurant.

Also, but you can decline to pay service charges if you are not satisfied with the service. But Tax, no one can decline to pay tax, or it will land you in the Jail!!!