Service Charge by restaurants in INDIA Not Mandatory!
The Delhi High Court upholding CCPA guidelines, has confirmed that restaurants cannot automatically add a mandatory service charge to food bills. Such charges must be completely voluntary and, if forced, are considered a violation of consumer rights. You can register a grievance at the National Consumer Helpline at 1915 , in case of any violation the penalty is upto Rs. 50,000 . The guidelines specify that: -Hotels and restaurants cannot automatically or by default add a service charge to food bills. -Service charge cannot be collected under any other name -Consumers cannot be compelled to pay a service charge, and establishments must clearly state that it is voluntary and at the consumer’s discretion. -Entry or service cannot be denied based on service charge payment. -Service charge cannot be included in the food bill and subjected to GST on the total amount.