No More Service Charges Levied on Customers in Restaurants – Modi Govt Passes New Bill

No More Service Charges Levied on Customers in Restaurants – Modi Govt Passes New Bill
In a bid to support the customers, the Government of India has issued a new rule of removing the service charges in restaurants. From now on, none of the restaurant in the country could ask for service charges from the customers. This is the new bill passed by Narendra Modi Government in the country. Earlier, in the month of January, the Government asked the customers to pick not to pay any sort of service charges and now it has made it mandatory in different restaurants.
Due to that, many disputes raged between the customers and the restaurant’s management authorities. In order to evade all that issues, the Government has finally issued this new bill. Previously, the customers had confusion because of their service charges. Now, the Government has done a good thing by circumventing the disputes between the hotel staff and the customers.
In the month of January, the Department of Consumer Affairs requested all the State Governments in the country to suggest the hotels and restaurants to exhibit the details before their hotel premises saying that ‘service charges are optional’.  After advising this way for all the hotels, the department has received bounteous complaints from the customers that none of the hotel or restaurant is following this custom. Instead, they are still imposing service charges for about 5 to 20 percent in the place of tips.
No Restaurant could ask for Service Charge now
In addition, the hotels have started compelling the customers to pay the service charges regardless of offering any sort of service to the customer. The Ministry then asked for a detailed explanation from the Hotel Association of India. It then replied as ‘service charge is completely discretionary and should a customer be dissatisfied with the dining experience, he/she can have it waived off. Therefore, it is deemed to be accepted voluntarily.’
Ram Vilas Paswan, the Consumer Affairs Minister showed his disapproval towards the custom of hotels charging an additional amount of service charge of about 5-20 percent other than the general bill. Paswan said that the hotel management must and should mention the service charges that they impose on the customers’ right in the menu card instead of the bill. There is actually no need for the hotel to take additional charge as the price of every food item printed on the menu itself. However, as per the rule, the customers need not have to pay additional service charge.
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