Service Charge Guidelines : According to CCPA, no restaurant can charge service charge for providing service to its client, if a restaurant levies service charge then the customer can e-filing complaint against that restaurant to the consumer commission…
Service Charge Guidelines: The debate going on for several weeks regarding service charge has taken a turning point. The Central Consumer Protection Authority (CCPA) has made new rules regarding service charge. According to the CCPA, no restaurant can charge service charge for providing service to its client, if a restaurant levies service charge, then the customer can make an e-filing complaint against that restaurant to the consumer commission. According to the rules, it is up to the customer to pay or not to pay the service charge. Restaurants cannot force you to do so.
Service charge is unfair trade practice
The CCPA has termed the service charge as Unfair Trade Practices. According to the Consumer Affairs Ministry, food and service are already included in the price of food provided in hotels and restaurants. The customer can also complain to the district collector. After investigation your complaint can be referred to CCPA.
Restaurants cannot charge now service charge
Service charge is being mentioned time and again for the last weeks and there is a lot of debate on it. The Consumer Affairs Ministry has refused to levy service charges to hotels and restaurants. This debate on service charge has created many confusions in the minds of people. The government has made it clear that service charge is illegal. At the same time, the Restaurant Association says that it is not illegal. Now new guidelines of CCPA have come on this.
What is service charge
Explain that service charge is the charge that all hotels and restaurants charge for providing service. It can range from 5 per cent to 15 per cent. Please note that this charge is in addition to 5 per cent GST (18 per cent GST in restaurants inside the hotel). While paying GST is mandatory on the one hand, service charge is optional on the other. This is the reason that in most restaurants, the matter of charging service charge is written along with its rate in the menu or sometimes on the main gate of the restaurant itself.
