Many Malaysians have been left in a dizzying haze of confusion since the implementation of the Goods and Services Tax (GST) on April 1.
One of the primary issues surrounding this is whether or not you need to pay for service charge when you dine at a restaurant, which many confuse with service tax.
Here’s the fundamental difference: Service tax is a form of tax collected by the service provider on behalf of the government (this has been replaced by GST).
Service charge, on the other hand, is a fee charged by the service provider for delivering services. Most restaurants impose 10% service charge for serving consumers food and beverages. Similar to tips collected, this amount is typically shared among the waiting staff at the end of every month.
While Deputy Finance Minister Ahmad Maslan had announced that the 10% service charge does not need to be paid if service is not up to par, many consumers will likely be paying more when they dine in a GST-registered restaurant or food outlet post-GST.
But never fear, for there are still restaurants out there that do not charge GST and/or service charge. Check out some of these cool eateries around the Klang Valley:
1. Burger Junkyard
Serves: American (Traditional), Burgers, Fast Food, Vegan and Vegetarian
Where: Oasis Square, Ara Damansara, Petaling Jaya
Service charge: 10%
2. For Goodness Cakes
Serves: Fusion home-cooked food
Where: 36G (ground floor), Jalan 27/70A, Desa Sri Hartamas, Kuala Lumpur
Service charge: None
3. Grind 22
Serves: Coffee, desserts, juice and smoothies
Where: No. 22, Lorong Maarof, Bangsar Park, Bangsar, Kuala Lumpur
Service charge: None
4. Obanhmi Damansara Uptown
Serves: Vietnamese-style sandwiches and wraps
Where: 33, Jalan SS 21/56b, Damansara Utama, 47400 Petaling Jaya, Selangor
Service charge: None
5. San Nae Deul Korean BBQ
Serves: Korean cuisine
Where: Oasis Ara Damansara, Kuala Lumpur
Service charge: 10%
6. Sausage and Ribs Shack
Serves: Western
Where: 9 Jalan 2/105, Taman Midah, Cheras, Kuala Lumpur
Service charge: None
7. Kaki Corner
Serves: Western/Fusion
Where: No. 20 & 22, Jalan Siput Akek, Taman Billion, Cheras, 47100 Kuala Lumpur.
Service charge: None
8. Mother Porridge
Serves: Chinese
Where: 61-g Jalan Perdana 6/4, Pandan Perdana, Kuala Lumpur
Service charge: None
9. The Curious Goat
Serves: Coffee, sandwiches, desserts
Where: 20-1, Jalan PJU 8/3A, Damansara Perdana, 47820 Petaling Jaya
Service charge: None
10. Pickle and Fig
Serves: Coffee, panini, sandwiches, smoothies
Where: 26, Jalan Tun Mohd Fuad 2, Taman Tun Dr. Ismail, 60000 Kuala Lumpur
Service charge: None
As GST kicks into full force, consumers need to be aware of which places are actually eligible to charge the new tax. For example, not all businesses are registered to charge GST. Consumers can look up on which restaurants impose GST, service charge, or both here.
