Strict on service charge: Government told service charge wrong, asked restaurants and hotel owners not to collect it

The Department of Consumer Affairs (DOCA) of the Central Government, in a meeting held with the National Restaurant Association of India (NRAI) today, has asked not to levy service charge. Actually, in restaurants across the country, customers are asked to add service charge to the food bill. Considering this service charge as wrong, the government has asked not to collect it. The government can soon bring rules regarding this.

First of all understand what is service charge?

When you buy a product or service, you have to pay some money for it. This is called service charge. That is, a service charge is taken from the customer for serving food and other services in the hotel or restaurant. Customers also pay the hotel or restaurant without question and answer along with the service charge. However, this charge is levied only at the time of transaction and not at the time of availing service.

Service charge is charged at some percentage of the bill

The service charge is mentioned at the bottom of your hotel or restaurant bill. This can usually be a percentage of your bill. Mostly it is 5%. That is, if your bill is Rs 1,000, then this 5% service charge will be Rs 1,050.