Service charge: Civil Supplies department to crack whip on eateries

HYDERABAD: Following consumers’ complaints regarding several hotels and restaurants collecting service charge even now (Goods and Services Tax  regime), the Legal Metrology department has decided to conduct raids on eateries and hotels across the state from Monday.Civil Supplies commissioner and Legal Metrology controller CV Anand on Saturday made it clear that the hotels and restaurants should not collect service charge from customers. “Including the service charge in hotel bill is illegal. It is up to the customers whether or not they wish to pay service charge for the services availed from the hotels or restaurants,” Anand said.

The commissioner held a meeting with representatives of Hotels Association at Civil Supplies Bhavan to discuss the complaints received with regard to service charges and GST on MRP. Anand said right from ordinary hotels and restaurants to star hotels, everyone was charging service charges. “Customers place order according to the price on menu expecting both the goods and services, therefore the price displayed was expected to cover both the goods and service components,” he said.

The point of time when a customer decides to give a tip is not when they enter the hotel or when they place their order. It is only after completing the meal that the customer is in a position to assess the service quality, and decide whether or not to pay a tip. Thus, if a hotel considers that entry of a customer amounts to their implied consent to pay a fixed amount of service charge, it  is illegal CV Anand, CSD chief
For complaints
7330774444 
Civil Supplies Department’s WhatsApp No on which consumers can send their complaints 
9490165619, 27612170 
Numbers of Legal Metrology Department’s for registering a complaint