Hyderabad customer wins Rs 4,000 in case against illegal service charge by restaurant

HYDERABAD: In a significant consumer rights victory, a Hyderabad customer successfully challenged a restaurant for illegally charging a service tax along with GST on his bill. The incident took place at Chiguru Restaurant in Jubilee Hills, where the customer was billed an additional Rs 247 as service tax, apart from the GST.

The customer immediately pointed out that charging a service tax in addition to GST is illegal and demanded a refund. However, the restaurant refused to comply, prompting the customer to take legal action. He sent a legal notice to the restaurant, after which the restaurant eventually agreed to refund the extra charges.

The customer pursued the case in consumer court, and after a year-long battle, he won Rs 4,000 as compensation from the restaurant.

This incident highlights the importance of consumer awareness. Many people unknowingly pay these extra charges without questioning them, but this case serves as a reminder that service charges beyond GST are not mandatory.