Service Charge: Recently, some restaurants were fined ₹50,000 for service charges. If a restaurant charges you a service charge, you can complain using the methods listed here.

Service charge rules

Restaurant Service Charge: If you go to a hotel or restaurant to eat and a service charge is added to the bill without asking, then this news is for you. The Central Consumer Protection Authority has taken action against 41 restaurants across the country, including Chaayos and Barbeque Nation. These restaurants are accused of adding service charge to the bill without the customers' consent. In many cases, fines of up to Rs 50,000 have been imposed and instructions have also been given to return the service charge collected from the customers. Let us understand what rights the customers have regarding service charge.

What's the whole matter?
According to the CCPA, many restaurants were automatically adding a 5% or 10% service charge to customer bills. Many customers paid this, thinking it was GST. However, service charge and GST are two different things. The government says that charging a service charge without customer consent is a violation of consumer rights. This is why action has been taken against these restaurants.

Is it mandatory to pay a service charge?
No, it's not mandatory. According to the CCPA, hotels and restaurants cannot force you to pay a service charge. If this charge is added to your bill and you don't want to pay it, you can ask the restaurant to remove it. A restaurant cannot refuse to serve you food simply because you refuse to pay it.

What is the difference between a service charge and GST?
Many people mistake service charge and GST for the same thing, but they are not. GST is a government-imposed tax that is mandatory to pay. A service charge is levied by restaurants and is optional. Whether or not to pay it is entirely up to the customer.

How to complain about service charges?
If a restaurant ignores your request and forcibly levies a service charge, you can complain. Call the National Consumer Helpline at 1915 or file an online complaint through the NCH app or website. You can also visit  consumerhelpline.gov.in .

Keep these things in mind:
Review the restaurant bill carefully. If there's a service charge included and you don't want to pay it, ask for it to be removed immediately. Keep the bill and the payment receipt. These documents will be useful in case of a complaint.