Service charge not mandatory, says Ram Vilas Paswan; Government issues guidelines

New Delhi: On Friday, the government approved new guidelines giving consumers the right to decide service charge they wish to voluntarily pay on a hotel or restaurant bill. The guidelines will be sent to states for necessary action, Food and Consumer Affairs Minister Ram Vilas Paswan said. The guidelines have made service charge totally voluntary and not mandatory. If implemented, the norms will provide relief to customers who have to pay service charge up to 20 per cent on food bills in lieu of tips. "The government has approved guidelines on service charge. As per the guidelines, service charge is totally voluntary and not mandatory now," the minister tweeted.

Government has approved guidelines on Service Charge.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

As per guidelines Service Charge is totally voluntary and not mandatory now.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

"Hotels and restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of the customer," he added.

Hotels/Restaurants should not decide how much Service Charge is to be paid by the customer &it should be left to the discretion of customer.

— Ram Vilas Paswan (@irvpaswan) April 21, 2017

"Guidelines are being sent to states for necessary action at their end," Ram Vilas Paswan said in another tweet.  

Guidelines are being sent to states for necessary action at their ends. — Ram Vilas Paswan (@irvpaswan) April 21, 2017

Before making the final payment. as per the guidelines, the column of service charge in a bill will be left blank for customers to fill up. "If there is mandatory levy of service charge, customers can file a complaint in the consumer court," a senior consumer affairs ministry official said, reported PTI.