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Service Charge Not Compulsory as Per New Government Guidelines
April 24, 2017
The government had recently issued guidelines on service charge, in relation to which Food and Consumer Affairs Minister Ram Vilas Paswan said that service charged levied by restaurant and hotel owners is not mandatory.
Paswan that although hotel and restaurant owners have the right to levy a service charge, it is at the customer’s own discretion. He also said that the new guidelines will be sent to the states soon so that appropriate action can be taken.
According to an official, if a business owner is found to be non-compliant with the guidelines, then they can be charged a hefty fine and may face a stringent action according to the Consumer Protection Law.
