The Ministry of Consumer Affairs, Food & Public Distribution (MoCAF&PD), on January 10, 2026, notified regarding the Mandatory Levy of Service Charge by Restaurants Violates Consumer Law: CCPA.
The following has been stated, namely:-
• The Guidelines to Prevent Unfair Trade Practices and Protection of Consumer Interest with Regard to Levy of Service Charge in Hotels and Restaurants, issued by CCPA on 4 July 2022, stipulate that:
• No hotel or restaurant shall add a service charge automatically or by default to the food bill
• No service charge shall be collected by any other name
• Consumers shall not be forced to pay a service charge and must be clearly informed that it is voluntary and optional
• No restriction on entry or provision of services shall be imposed based on refusal to pay service charge
• Service charge shall not be added to the bill and shall be subject to GST
[Press Release ID: 2213227]
