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

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

| Last Updated: 21 Apr 2017 09:14 PM

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. Image: Union Food Minister Ram Vilas Paswan. (PTI/File Photo)

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.











"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.






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

 






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.

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