Adding service charge to food bill is fraud: Goyal


New Delhi: Restaurants cannot add “service charge” to food bills and leaving tips should be left to the discretion of diners, says Union Food and Consumer Affairs Minister Piyush Goyal Said on Friday.
Adding a service charge to the bill is a “trick”, the minister said, and restaurants cannot mislead people by charging for a service. “It simply came to our notice then. You cannot add a service charge to a (restaurant) bill … If you think there are some more benefits to be given to employees, customers cannot be forced to do so. You can raise prices to increase … There are no price restrictions on restaurants. We have not stopped the restaurant from raising prices. Will be Wrong Restaurants say they will suffer if service charges are withdrawn, “Goyal said in response to a question from the restaurant about the service charges.
The minister said that often, the service charge is not explicitly mentioned and it varies from restaurant to restaurant.
On Thursday, his ministry called for an end to the practice of including service charges in food bills, arguing that people often interpret “service charges” as “service taxes.” He also rejected industry arguments that as customers enter the restaurant, they contract to pay a charge. The ministry cited the current customer safety The act refers to unfit contracts that adversely affect customers.
Goyal said there are some countries where service charges are mandatory and so people are aware of the standards. But in India, there is no rule or law that imposes a service charge.

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