Dear friends,

When you makan at a restaurant, the restaurant will almost definitely hit you with a 10% service charge on actual F&B that you consumed.

Let us take a simple example.

2 steaks @$25 $50.00
A bottle of Cardonnay $40.00

subtotal (1) $90.00
10% service charge $9.00
subtotal (2) $99.00

How much is the GST payable?
Answer – 5% of ($90.00 + $9.00) = $4.95

Mrs Lee, Director of Corporate Communications, IRAS said GST is applied on the final value of goods or services (including any indirect taxes/duties) consumed in Singapore.

P/S – For those who have gone to a movie recently – can share how they calculate GST for your movie ticket?

Reference – Straits Times – Inbox – page 45, Nov 19, 2006.