Regulator just shrunk your food bill! CCPA bars default levy of ‘service charge’ in restaurants

You can still tip the waiter if you feel the service is superb, but that is your personal choice. And no restaurant can refuse services over non-payment of service charges.
For representational purposes (Photo | EPS)
For representational purposes (Photo | EPS)

NEW DELHI: The next time you walk into a favourite restaurant for a meal, you can expect the food bill to be lower than before, as the Central Consumer Protection Authority (CCPA) has just barred the default levy of ‘service charge’ on it. If it is not, you can file a complaint against the eatery.

soumyadip sinha
soumyadip sinha

Also, service charge can’t be collected by adding it along with the food bill and levying GST on the total amount, the regulatory body said in its new guidelines.

You can still tip the waiter if you feel the service is superb, but that is your personal choice. And no restaurant can refuse services over non-payment of service charges.

The guidelines, released on Monday, seek to prevent unfair trade practices and violation of consumer rights.

However, Pradeep Shetty, joint honorary secretary of the Federation of Hotel and Restaurant Associations of India, says the industry is already following the guidelines.

“Nobody was forced to pay the service charge,” he claims.

The new guidelines come as a big relief to consumers as most restaurants and bars levy 5-12% service charge on food bill.

The bill could burn a bigger hole in your pocket if service charges are levied on liquors because many states levy a hefty value-added tax on the same.

So, watch your food bill the next time you eat out. If you are levied service charge, you can ask the restaurant to remove it.

Alternatively, you can lodge a complaint on the National Consumer Helpline (NCH) by calling 1915 or through the NCH mobile app.

You may also file a complaint with the Consumer Commission through the e-daakhil portal (www.e-daakhil.nic.in). The complaint may also be emailed to CCPA on com-ccpa@nic.in.

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