Service charge: Why put the consumer in a conflict with eateries?
The government puts the onus of deciding whether to pay service charge on the consumer. The government notification puts the onus of deciding whether to pay this ‘service charge’ or not on the consumer. The Ministry of Consumer Affairs, Food and Public Distribution hasn’t issued any prohibitory order to stop hotels and restaurants from levying service charge on bills. The hotels, restaurants and eateries charge 5-20% of ‘service charge’ in lieu of tips, which is not a government tax or cess. Service providers versus consumers; government silent National Restaurant Association of India, a body representing more than one lakh restaurants and eateries across India said in its statement, “Inclusion of service charge in a restaurant bill is a common and accepted practice…It is a matter of policy for a restaurant to decide if service charge is to be levied or not.
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