New Delhi, April 21: In a welcome move for consumers, the government on Friday said that hotels and restaurants cannot decide the amount of service charge and it should be left to the customer’s discretion.
Food and consumer affairs minister Ram Vilas Paswan said on Friday, “Guidelines are being sent to states for necessary action at their ends.”
Govt has approved guidelines on Service Charge. Service Charge is totally voluntary and not mandatory now: Union Minister Ram Vilas Paswan pic.twitter.com/hJ64dkkLDG
— ANI (@ANI_news) April 21, 2017
Last week, it was announced by the government that an advisory is being planned to form a to crack down against unfair imposition of service charge on food and drink bills.
However the decision is going to hurt the hospitality industry and the regulatory of industry had written to government about their concerns following government’s ruling in January when it said service charge is not compulsory.
The hotels’ body had said that it would affect 8.5 million people being employed by the industry while pointing out that the customer has a choice to choose to eat or not when it can not pay the service charge to a particular eatery or restaurant.
After Liquor ban in the hotels and restaurants in proximity of national highways another jolt for some players. But the consumers at large would welcome the decision.