CCPA issues new guidelines regarding service charges levied by restaurants

Central Consumer Protection Authority i.e. CCPA has issued new rules regarding service charge, according to the instructions issued by CCPA, from now on no restaurant can charge service charge for providing service to its consumers.

If a restaurant levies a service charge in its bill, the customer can e-file the complaint against the restaurant to the Consumer Commission (edaakhil.nic.in). According to the new rule, whether or not to pay the service charge will depend on the customer, the restaurant cannot force the customers in any way for this.

There was a debate going on in the country for some time on charging service charge in restaurants. Now a directive has been issued by the Consumer Affairs Ministry to stop hotels and restaurants from charging service charges. Now new guidelines have been issued by CCPA.

Most of the hotels and restaurants in our country charge service charges from their customers. Service charge is levied from 5% to 15% of the food bill. This charge is in addition to the 5% GST (18% GST for restaurants inside the hotel). In such a situation, the customer has to bear the burden of service charge in addition to GST. This is the reason that in most restaurants, the matter of charging service charge is written along with its rate in the menu or at the main gate of the restaurant itself.

Speaking in this matter, Consumer Affairs Minister Piyush Goyal said that restaurants cannot levy service charge on any kind of bill without the will of the customer. He has said that the service charge is optional for the customers. He said that if the restaurant feels that certain facilities should be given to the employees, then it cannot be imposed on the customers. He said that restaurants cannot say that they will be harmed by not taking the service charge. Instead, restaurants may raise the prices of the foods on their menus or offer pay hikes to their workers.