The government will ask the restaurants why the service charge is still levied India News


New Delhi: Secretary of Union Consumer Affairs Rohit Kumar Singh said in the letter National Restaurant Association of India Calling on them to discuss the ongoing practice of levying service charges, citing guidelines issued by the ministry in April 2017, said that forcing consumers to pay Service charge As a precondition for placing an order as a “prohibited trade practice” under the Consumer Protection Act. He also pointed out that consumers are also being misled about such legality Fees And requesting removal of such charges from the bill amount is harassed by the restaurant.
Restaurants also say the service charge is optional and they can waive it if the diner wants. Whenever the customer asks, the charge is waived but such requests are very rare and one restaurant explains. He says the service charge is 10% of the total bill and that money goes to the staff. Diners like this standardization more than the previous days of staff standing over their heads in anticipation of a tip after a meal, making it awkward for guests to decide the amount.
Restaurant Joy Singh says the service charge is like an employee benefit plan because the entire amount collected goes to the employees. He says food and beverages are on offer at a restaurant and there is service.
The four issues – making the restaurant service charge mandatory, adding a service charge to the bill in addition to other fees or charges, pressuring customers that paying the service charge is optional and voluntary, and embarrassing customers if they object to paying the service charge – would be. Was discussed during the meeting.
The Ministry’s 2017 circular explicitly states that one component of the service is the provision of food and beverages ordered by the customer. “Therefore, the cost of the product is expected to cover both the goods and the components of the service.”
It also states that the order placed by the customer is the amount of their agreement to pay the prices indicated on the menu card along with the applicable tax.

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