Most restaurants collect ‘service charges’ in Vijayawada

VIJAYAWADA : Taking advantage of the lack of awareness and customers’ ignorance, most hotels and restaurants in the city are collecting an excess amount in the name of ‘service charge’ in addition to the GST on the bill.

Despite numerous incidents being reported where customers have been pressured into paying an additional fee on top of the GST, restaurant managements continue to flout the rules of the Consumer Protection Act by involuntarily adding service charges ranging from 5 to 10 per cent of the bill amount without allowing consumers the choice or discretion to decide whether they want to pay such charges.

According to guidelines issued by the Central Consumer Protection Authority (CCPA), restaurants and eateries shall not collect service charges from consumers. These guidelines were issued after the Consumer Affairs Department received complaints from consumers about being levied service charges at extremely high rates in 2022. The CCPA guidelines state customers are expected to pay a tip if they are satisfied with the service, and they have the freedom to choose the amount.

Source : https://www.newindianexpress.com/states/andhra-pradesh/2024/Jun/10/most-restaurants-collect-service-charges-in-vijayawada