What will happen if you refuse to pay service charge in restaurants, bars? Centre issues clarification

A violent clash broke out between a family and the staff of a restaurant in Noida’s popular Spectrum Mall last week when the family refused to pay the service charge on their bill, resulting in the restaurant staff misbehaving with the customers.

The video of the violent fight inside the mall went viral, sparking a lot of questions about the service charge laws in India, and whether it is mandatory to pay service charges on your restaurant and bar bills across the country.

In view of the clash that took place inside the Uttar Pradesh Mall, the Department of Consumer Affairs, led by the central government, has issued an important notification regarding the payment of service charges on the restaurant and bar bills.

Is it mandatory to pay service charge in restaurants?

According to the notice issued by the Department of Consumer Affairs, the restaurants cannot force a customer to pay any service charge as it is termed as a discretionary charge, and should not be imposed forcefully if the customer is not satisfied with the service.

This means that the service charge on restaurant and bar bills is not mandatory, and can be deducted from the bill if the customer is dissatisfied with the services of the restaurant and does not wish to pay.

What will happen if you refuse to pay service charge on your food bills?

According to a legal standpoint, there is no action that can be taken against you if you choose not to pay the service charge of the restaurant. Even if it is added to the bill, you can ask the restaurant staff to deduct the charges and give you a fresh bill.

There is no fine for not paying the service charges in restaurants and bars, and the customers can choose to pay at their own discretion, according to the notification issued by the Department of Consumer Affairs.

READ | Restaurants barred from imposing service charge: What customers should know