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Adding service charge in food bill is deceit: Goyal – Times of India

NEW DELHI: Restaurants can not add “service charge” to food payments and it ought to be left to the discretion of diners to go away ideas, Union food and client affairs minister Piyush Goyal mentioned on Friday.
Adding service charge to the bill is “chhal” (deceit), the minister mentioned, and eateries can not mislead individuals by charging for service. “It has to be the consumer’s choice. You (restaurants) cannot add service charge in a bill…If you feel that some more benefits are to be given to employees, it cannot be forced on customers. You can raise prices to give hikes…There are no price controls on restaurants. We have not stopped restaurants from increasing prices. It will be wrong for restaurants to say that they will suffer losses if the service charge is withdrawn,” Goyal mentioned, responding to a question on service charge by eating places.
The minister mentioned that usually, the service charge is not talked about clearly as such and varies throughout eating places.
On Thursday, his ministry had requested eateries to cease the observe of together with service charge in the bill arguing that individuals typically interpret “service charge” as “service tax”. It had additionally rejected the business’s arguments that as prospects enter a restaurant, they enter right into a contract to pay the charge. The ministry had cited that the present Consumer Protection Act specifies unfair contracts that adversely influence the shoppers.
Goyal mentioned there are some nations the place service charge is obligatory and therefore individuals are conscious of the norms. But in India, there is no such rule or legislation imposing service charge.

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