Will dining out be cheaper? What to do if service charge is levied Explained: How the new service charge guidelines will impact you

Hotels, restaurants barred from levying service charge by default | Why single out F&B industry when many others charge for a service?: Restaurateurs

- Niharika Lal and Divya Kaushik

The recent guidelines issued by the Central Consumer Protection Authority have barred restaurants and hotels from levying service charge in any form

The restaurant industry has said that it’s unfair that they have been singled out when many others charge for service, adding that the new rule is a major blow to their employees 

The new guidelines issued by the Central Consumer Protection Authority (CCPA) says, “Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.” It bars hotels and restaurants from levying service charge by default in food bills and allows customers to file complaints in case of violation. The CCPA has issued guidelines after receiving complaints from customers. Now it is up to customers to pay any amount as tip and eateries can only charge for the rate of food items.

DOES THAT MEAN YOU WILL HAVE TO PAY LESS FOR FOOD NOW?