The Central Consumer Protection Authority has made an announcement prohibiting any food related business from levying Service Charge on their customers.
Service charge is not any tax or duty or cess levied by the state or central government. It is merely an extra amount that the business charge over an above their stipulated prices for the services rendered. Previously a large number of restaurants and hotels used to levy a service charge on their bills ranging from 1% to 4%. Legally Service Charge was not compulsory and the hotel or restaurant had to deduct it if the customer was not happy with paying the same. However many businesses also made it almost compulsory and many debates resulted.
After the new announcement, no hotel or restaurant or any other eatery will be able to charge it automatically. The customers have to intimated that its totally their choice to pay the extra amount or not. Also these businesses cannot restrict their services based on payment or non payment of this charge. Neither can hotels, restaurants and resorts take this charge in any other name. Also GST cannot be charged on the collective amount.
In case any business decides to violate this rule, the consumer can put a complaint with the National Consumer Helpline. The number for the same is 1915 or through the National Consumer Helpline application.
