Restaurants cannot decide service charge, Govt says

The government on Friday approved the guidelines on Service Charge and said that hotels and restaurants cannot decide on the amount of service charge that a customer has to pay.  

Food and Consumer Affairs Minister Ram Vilas Paswan, in series of tweets, said that hotels/restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of customer.

Government has approved guidelines on Service Charge.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

As per the guidelines given by the government, the service charge is totally voluntary and not mandatory now. 

As per guidelines Service Charge is totally voluntary and not mandatory now.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

Hotels/Restaurants should not decide how much Service Charge is to be paid by the customer &it should be left to the discretion of customer.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

Guidelines are being sent to states for necessary action at their ends.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

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Paswan confirmed that the guidelines are sent to states for necessary actions at their ends. 

In January, the Department of Consumer Affairs stated that service charge on food bills is not compulsory and a customer can choose to have it waived if not satisfied with experience.

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States were told to ensure that hotels/restaurants disseminate this information through displays in their premises.