In what could be termed as a New Year’s gift to the people across the country, the government on 2 January announced that you can refuse to pay the service charge if you do not like the service of any particular restaurant.
Service charge is an extra charge made for serving customers in a restaurant in addition to the taxes. According to several media reports, the department of consumer affairs requested the government to make the service charge optional and to give the options of not paying a service charge to the restaurant if they do not like the service received.
Reports further suggest that a number of consumers have been complaining that the customers are made to pay a service charge in the name of the tip even if they don’t like the service.
The customers were forced to pay 5-10% service charge earlier.
The government in their press release said, “It is clarified that these ‘service charges’ collected by the restaurants/hotels/eateries are retained by the restaurants/hotels/eateries and are not ‘service tax’ imposed by the Government.”
The government has finally clarified thatservice charge is “voluntary” and a “consumer dissatisfied with the services can have it waived off.”
Hence, from now on if you are not completely happy with the service provided to you by any eatery you have the complete right to say no to service charge added in your final bill.
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