The government stated on Monday that any consumer may decide to refuse to pay the service charge levied by a hotel or restaurant.
This is a regrettable pronouncement on a justified practice, stated a leading hotels association.
Many restaurants and hotels levy a service charge of 5-20 per cent, usually seen as a replacement for tips. This is apart from the service tax charged from the customers.
The Centre has told states to ensure that hotels and restaurants disseminate the information that their service charges are discretionary and voluntary, and consumers dissatisfied with the service can refuse to pay them.
