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Centre’s big decision; CCPA bans hotels and restaurants from adding service charges to their food bills

By Ruchi Upadhyay 
Updated Date

New Delhi: If you are fond of eating food in hotels and restaurants, then this news is of your use. Yes, now hotels and restaurants will not be able to charge service charges on the food bill from the customers. The Central Consumer Protection Authority (CCPA) on Monday banned hotels and restaurants from adding service charges to their food bills. That is, after this the food of hotels and restaurants will be cheaper than before.

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If it is violated by any hotel or restaurant, then the customer will be able to complain about it. In the midst of ever-increasing complaints from customers, the CCPA has issued guidelines to prevent unfair trade practices and violation of consumer rights. As per CCPA order, no hotel or restaurant shall automatically add service charge to the bill.

Apart from this, it has also been directed that service tax will not be charged by any other name. The order said that no hotel or restaurant can compel customers to pay service charges. If the customer wants, he can pay the service charge. This will be completely voluntary, optional and at the discretion of the consumer.

As per the guidelines, no restriction on entry or service shall be imposed on the customers on the basis of collection of service charges. Also, service charge cannot be levied by adding it to the food bill and levying GST on the total amount. If a customer observes that the hotel or restaurant is charging service tax in violation of the guidelines, he can request the concerned entity to remove it from the bill amount.

Customers can also register complaints if required by calling the National Consumer Helpline (NCH) number 1915. They can also file a complaint regarding this in the Consumer Commission.

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