Question : Service Charges in Hotels- Restaurants Post GST

(a) the details of steps taken by the Government to ensure hotels and restaurants don’t charge service charge in addition to Goods and Services Tax(GST);
(b) the details of redressal mechanism for a customer who is being charged additional service charge; and
(c) the details of proposed penalty for hotels and restaurants which are charging such service charge?

Answer given by the minister

(a) The Department of Consumer Affairs has framed and circulated Guidelines on fair trade practices related to charging of service charge from consumers by hotels / restaurants.
(b) & (c) The guidelines specify that a customer is entitled to be heard and redressed under the provisions of the Consumer Protection Act, 1986 and can approach a Consumer Disputes Redressal Commission / Forum of the appropriate jurisdiction.

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