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.

 

 



 

Comments

Post a Comment

Popular posts from this blog

TATA MOTORS DEMERGER

  Tata Motors Ltd. demerged into two listed companies effective on 1 st October, 2025: Tata Motors Passenger Vehicles (TMPV)- Cars, EVs, Jaguar Land Rover Tata Motors Commercial Vehicles (TMCV)- Trucks, buses, defense, fleet vehicles Earlier, one share price was reflecting both businesses together. After split, the market started valuing them separately. BUT WHY DIFFERENT VALAUATION? Passenger Vehicles (TMPV) - It provides High Growth but high risk, competition and cyclic demand where margins can fluctuate a lot. Investors usually give growth companies higher valuation. Commercial Vehicles (TMCV) - It provides stable demand from infrastructure, logistics with strong cash flows and is therefore more reliable. It is valued lower with stable earnings.                  Hence, passenger and commercial vehicles got different valuations, leading to diff...
Read more

INDIA US DEAL AND IT'S IMPACT ON INDIA

  1.    MOTHER OF ALL DEALS In February 2026 , India and the United States announced a major interim bilateral trade agreement in which:- US tariffs on Indian goods reduced from ~50% to ~18%. India agreed to: Reduce tariffs on US industrial and agricultural products. Eliminate digital services tax . Increase imports from the US . A framework target of $500 billion imports from the US over 5 years was mentioned (non-binding). Additional punitive tariffs linked to India buying Russian oil were removed. Trade framework launched for future deeper cooperation (manufacturing, pharma, tech, defense). ·         India reportedly “intends” to buy $500B worth of US goods over 5 years . Critics’ View:                              ...
Read more