Hotels and restaurants cannot compel customers to pay a service charge

The Central Consumer Protection Authority (CCPA) announced on Monday that hotels and restaurants are no longer permitted to levy service charges automatically or by default on food bills, and that customers will be able to file complaints if this occurs.

It is also not possible to collect the service charge by adding it to the food bill and levying the Goods and Services Tax (GST) on the total amount.

In the event of a violation, customers will be able to file a complaint. Customers cannot be forced to pay service charges, and hotels and restaurants must inform them that this charge is voluntary, optional, and at their discretion.

It is also not possible to collect the service charge by adding it to the food bill and levying the Goods and Services Tax (GST) on the total amount.

According to the guidelines, there are no restrictions on entry or provision of services based on the collection of service charges.

Customers can file complaints with the Consumer Commission as well.