DollarsAndSense Answers:

In most cases, the service charge (10%) is levied on the full price of your food order, before any discounts are applied to the original price of your food items.

GST is then applied to the net price, after discounts,

To illustrate, here is the math:

Net Price = MENU PRICE + 10% of MENU PRICE – Discount Off MENU PRICE

What You Pay = Net Price + 7% GST of Net Price

Restaurants applying the service charge to the full menu price is fair, since discounts are for the food items, and not service.

However, by law, GST should only be applied to the value of goods and services you’re actually paying, after discounts.

Read Also: Dining Promotions: 1-for-1 or 50% Off – Which Is Better?

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