Assn says nothing illegal about restaurants levying service charge

NEW DELHI: The National Restaurant Association of India (NRAI) on Tuesday defended service charge being levied by restaurants across the country, saying there is no illegality in levying such a charge.

Ahead of its June 2 meeting with the government to discuss the issues pertaining to service charges levied by restaurants, the top hotel industry body said the levy of service charge is a matter of individual policy to decide if it is to be charged or not.

“Information regarding the amount of service charge is mentioned/displayed by restaurants on their menu cards and otherwise also displayed on the premises, so that customers are well aware of this charge before availing the services,” the NRAI said in a statement.

“Once the customer is made aware of such a charge in advance and then decides to place the order, it becomes an agreement between the parties, and is not an unfair trade practice. GST is also paid on the said charge to the government,” the industry body argued.