Hyderabad: The civil supplies department will take up a special drive against hotels and restaurants that are forcibly collecting service charges from customers even in the GST regime. Civil supplies and legal metrology commissioner C.V. Anand said that the drive will begin from November 13 and will be held across the state.
Mr Anand held a meeting with representatives of hotels and restaurants associations and warned of filing cases against them under the Consumers Act in the wake of complaints received. He said that the service charge should be optional and consumers can pay only if they wish to. Mr Anand said that including service charge in the total bill was illegal.
He added that the bill issued to the customer should clearly display that service charge is voluntary. The service charge column of the bill should be left blank for the customer to fill up if they desire, before making payment. “From November 13, the department will conduct raids on hotels and restaurants against the compulsory service charge imposition. For this G.O. Ms. No. 9 has been issued,” he said.
Mr Anand told the representatives of the associations that complaints were received on service charges and GST on MRP. Complaints were also received on the national consumer helpline, that hotels are charging service charge in the range of 5 to 20 per cent in lieu of tips. If the customer forced to pay service charge it amounts to unfair trade practices as defined under the Act Sec. 2 (r),
Mr. Anand has asked consumers to lodge complaints with the consumer forum. Consumers can send complaints to the civil supplies WhatsApp No. 7330774444 or to the legal metrology department: 9490165619, 27612170 or email
clm-ts@nic.in.
