The CCPA issued guidelines for preventing unfair trade practices on July 4, 2022. Under the guidelines, it has been observed that the default service tax levied by restaurants on customers is illegal. No restaurants may levy automatic or default service charges upon their customers. The guidelines also restrict restaurants from levying such charges under any other name.
Under the CCPA’s guidelines for preventing unfair trade practices, the following practices have been expressly deemed illegal:
- Hotels/restaurants shall not add service charge automatically or by default in the food bill.
- No collection of service charge shall be done by any other name.
- No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that the service charge is voluntary, optional, and at the consumer’s discretion.
- No restriction on entry or provision of services based on collection of service charges shall be imposed on consumers.
- The service charge shall not be collected by adding it along with the food bill and levying GST on the total amount.
If a restaurant refuses to waive off the service charge, here’s what you can do:
- The consumer can lodge a complaint against the restaurant or hotel by calling 1915 or through the NCH mobile app.
- The consumer can also file an official complaint against unfair trade practices with the Consumer Commission.
- The Complaint can also be filed electronically through e-daakhil portal https://www.edaakhil.nic.in for its speedy and effective redressal.
- The consumer may submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA. The complaint may also be sent to the CCPA by e-mail at [email protected].
Find the CCPA guidelines to prevent unfair trade practices and protection of consumer interest with regard to the levy of service charges in hotels and restaurants here.
