Can any restaurant impose service charges on the food bill
Querist :
Anonymous
(Querist) 27 February 2024
This query is : Resolved
I was charged by BBQ nation while having lunch at one of the restaurants of the chain imposed me service charges at the rate of 4.75% of the total bill and also separate GST imposed on the bill . Is it legal to charge this amount?
T. Kalaiselvan, Advocate
(Expert) 27 February 2024
service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction. Many industries collect service charges, including restaurants, banking, and travel and tourism.
Firstly, there are the expenses incurred for the food and beverages consumed. Additionally, government taxes such as the Goods and Services Tax (GST) are levied on the total bill. Alongside these costs, it is common for restaurants to include a service charge ranging from 5% to 10% as part of the overall bill.
you can refuse to pay the service charge by telling this upfront and the restaurant can serve you or ask you to walk out.
The CCPA stated in the guidelines issued on July 4, 2022, that service charge shall not be collected from consumers by any other name and is optional and voluntary.
