Service charge: India bans service charge at hotels and restaurants
5-07-2022, 10:13

Font size: [ A+ ] / [ A- ]

Restaurants in India often add the tip - called a "service charge" - to a customer's bill

India's consumer protection authority has banned hotels and restaurants from levying a service charge on bills.

The order came after authorities said there had been an increase in complaints by customers being forced to pay the charge.

Restaurants often add a 5% to 15% tip to a customer's bill under a "service charge" category.

But new rules say restaurants can no longer "add service charge by default or automatically" to the bill.

The new guidelines also bar restaurants from collecting tips from customer "under any other name" or "deny service or entry to customers who refuse to pay a tip".

An unsavoury row over tipping at restaurants has been brewing in the country for a few years, with customers complaining that they weren't informed about this extra charge.

In 2017, the government's consumer affairs department issued a set of guidelines saying that customers only had to pay the prices displayed on the menu card along with government taxes.

The department said that people could use their "discretion" on whether or not to leave a tip and that extra charges without the customer's consent amounted "to unfair trade practice".

The government had instead encouraged restaurants to pay fair wages to its employees and increase product prices to meet the cost.

Restaurants have, however, continued to add the tip to the bill, leaving it up to patrons to contest the extra charge.

Last month, the government called a meeting with the National Restaurant Association of India (NRAI), saying it had received an increasing number of complaints from consumers that they were still being "forced to pay service charges, often fixed at arbitrarily high rates" and that "they are harassed if they request to remove it from the bill".

The NRAI, which represents more than half a million restaurants, had defended the practice, saying it was a "matter of individual policy" and levying such a charge was not "illegal".

They also argued that the service charge brought additional revenue to the government too since restaurants paid a tax on what they charged customers.

The new guidelines say that consumers can lodge their complains online or through the National Consumer Helpline.

 

BBC

Comments: 47
#27   Terrance
      
what steroid burns fat

References:
gojourney.xsrv.jp
5 February 2026 22:28
#26   Jai
      
References:


Casino slot machine

References:
mozillabd.science
4 February 2026 09:32
#25   Edmundo
      
References:


The rivers casino

References:
https://p.mobile9.com/flatpriest40
3 February 2026 14:36
#24   Marita
      
References:


Online roulette strategy

References:
levesque-henry-2.federatedjournals.com
2 February 2026 11:22
#23   Woodrow
      
References:


Regle du blackjack

References:
http://dubizzle.ca
2 February 2026 04:34
#22   Chu
      
References:


Casino di sanremo

References:
gaiaathome.eu
1 February 2026 04:41
#21   Edmundo
      
References:


Las vegas slot machines

References:
https://flibustier.top/
1 February 2026 04:15
#20   Kiara
      
References:


Lady luck casino las vegas

References:
pad.geolab.space
31 January 2026 16:04
#19   Regan
      
References:


Pink floyd live 8

References:
funsilo.date
31 January 2026 03:58
#18   Pedro
      
gnc alpha muscle stack

References:
https://escatter11.fullerton.edu
29 January 2026 15:52
#17   Chante
      
definition of steroid

References:
clashofcryptos.trade

short term effects of anabolic steroids

References:
http://pattern-wiki.win/index.php?title=murdockmay1171
29 January 2026 10:16
#16   Corine
      
References:


Manoir charlevoix

References:
marvelvsdc.faith
28 January 2026 15:21
#15   Kristen
      
References:


Gala casino nottingham

References:
hedge.fachschaft.informatik.uni-kl.de
28 January 2026 09:58
#14   Justina
      
muscle hardening agent

References:
decoyrental.com
26 January 2026 21:44
#13   Marilou
      
was arnold on steroids

References:
moonland.com
26 January 2026 10:17
#12   Anne
      
References:


The colosseum at caesars windsor

References:
https://www.youtube.com/redirect?q=https://candy96.eu.com/en-us
25 January 2026 16:41
#11   Leoma
      
References:


North brunswick

References:
cameradb.review
25 January 2026 15:54
#10   Ezra
      
References:


Casino listings

References:
www.immo-web.ro
25 January 2026 12:22
#9   Sherrill
      
References:


Casino online roulette

References:
intensedebate.com
25 January 2026 07:26
#8   Hortense
      
References:


Louisville casino

References:
gpsites.stream
25 January 2026 03:50
Add Comments

Name:*
E-Mail:
  Geo Keyboard  
 

Dear reader, guardian.ge welcomes your comments. Please express your views on topic and be respectful of others.

bold italic underline strike | align left centered align right | Ensert smilies insert linkInsert protected URL Choice the color | hidden text insert quote Convert selected text from transliteration to Cyrillic alphabet Insert spoiler

Code: *