Service Charge

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"By the time I bought the tickets, my transaction had increased by 30% of the amount I had initially seen for the movie ticket price. Unfortunately, this practice isn’t merely limited to Paytm or INOX, even cab services and food delivery apps levy this charge,” says Vijay Gopal. #ConsumerRights #RBI

It said that when hotels and restaurants sell food and drinks, they also render a service, making it a composite transaction with composite billing. Therefore, MRP rates cannot be insisted upon for such entities.

At first, they extended it to June 30, and then September 30. Now, passengers can enjoy service charge exemption till much longer.

“Service charge on hotel and restaurant bill is 'totally voluntary' and not mandatory.”

The government has issued a clarification, stating that paying ‘service charge’ levied by hotels/restaurants is purely voluntary, and that consumers dissatisfied with services can have it waived off. But its implementation on the ground may not be easy. Rakesh Dubbudu from Factly digs deeper for answers.