Centre advises customers to approach court if restaurants demand service charge, NRAI questions guidelines

The National Restaurant Association of India (NRAI) has maintained that the restaurants charging service charges were not violating the law.

By: Express Web Desk | New Delhi | Updated: July 9, 2017 1:47 pm
service tax at restaurants, restaurant billing, restaurant service tax waived off, service tax waived off from bill, restaurant service tax In disregard to the guidelines issued by the government two months back, plethora of eateries, restaurants and other food joints continue to charge service charge from the customers. (Representative Image)

It is illegal for restaurants and eateries to levy a service charge, the department of consumer affairs reiterated on Saturday. The department even advised the diners to approach the consumer courts if they are charged for service. In April, the department issued guideline prohibiting eateries from levying a service charge and, instead, left it to the discretion of the customers.

Avinash K Shrivastava, secretary, department of consumers affairs said that the service charge is something like a tip which is voluntary on the part of the consumer.

“We issued guidelines to this effect on service charges in April. The consumers should move a consumer court if they find violation. They can come to us also and we can guide them on how to go about against those violating the guidelines. Our role is of mediation and persuasion,” he told Hindustan Times.

“Under best practices, we have written in the advisory that a column should be left on the bill, and customer to decide how he wants to pay, it’s something hotel cannot decide. Guidelines to this effect were issued on April 23,” informed  Shrivastava.

In disregard to the guidelines issued by the government two months back, many eateries, restaurants and other food joints continue to levy service charge on customers. The National Restaurant Association of India (NRAI) argued that restaurants charging service charge were not violating the law.

Prakul Kumar, secretary general, NRAI, told in a written statement, “Guidelines are not laws. The present statements by the government are causing unnecessary confusion in public, which is adversely affecting the smooth functioning of restaurants. It is once again reiterated that as of now levy of service charge by restaurants is legal and does not violate provisions of the law.

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  1. J
    Jul 10, 2017 at 12:47 pm
    I have been charged 10 service charge yesterday how to complain whom to be approached
    1. S
      Jul 9, 2017 at 2:01 pm
      It's the bounden duty of Government to take action against erring restaurant owners. Customers can not afford to file court case. But your own (Government) inspectors take bribe from restaurants. ACB MUST TAKE AGAINST 1) RESTURANTS 2) ERRING INSPECTORS IMMEDIATEL. DO NOT EXPECT PEOPLE TO FILE COURT CASE AGAINST THESE INFLUENTIAL PEOPLE.
      1. G
        G.Ranga Chary
        Jul 9, 2017 at 1:57 pm
        The government should declare service charges levy by Hotels, restaurants and eateries as illegal. Then the hotels stop putting service charges in the bills. There should be hefty penalty imposition for non compliance of guide lines. The government should not abdicate it's responsibility by advising aggrieved public to approach courts.