41 Restaurants Fined: Did You Pay Illegal Charges?
The government's consumer watchdog has cracked down on 41 restaurants for adding service charges to bills without telling customers. This charge is not mandatory — you have the legal right to refuse it and ask for it to be removed.
A ₹1,500 dinner bill can quietly become ₹1,650 with a 10% service charge you never agreed to pay.
You may have paid illegal service charges at your favourite restaurant
Key Takeaways
Check your restaurant bill carefully before paying — look for any line item labelled 'service charge' or 'service fee'.
Politely ask the restaurant to remove the service charge if it was not disclosed upfront — they are legally bound to comply.
File a complaint on the National Consumer Helpline (1800-11-4000) or consumerhelpline.gov.in if a restaurant refuses to waive it.
The government's consumer watchdog has cracked down on 41 restaurants for adding service charges to bills without telling customers. This charge is not mandatory — you have the legal right to refuse it and ask for it to be removed.
Here's what happened: CCPA initiated action against 41 restaurants for auto-adding service charges to customer bills without clear prior disclosure.. Service charges are legally voluntary in India — restaurants cannot enforce them as a mandatory part of your bill.. Consumers can file complaints if a restaurant refuses to remove the service charge after being told it is not compulsory..
What you should do: Check your restaurant bill carefully before paying — look for any line item labelled 'service charge' or 'service fee'.. Politely ask the restaurant to remove the service charge if it was not disclosed upfront — they are legally bound to comply.. File a complaint on the National Consumer Helpline (1800-11-4000) or consumerhelpline.gov.in if a restaurant refuses to waive it..
GST is mandatory and non-negotiable, but service charge is not. Never confuse the two — you can refuse the latter without any legal consequence.
Know Your Consumer Rights
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- [1]“Hotels can't add a service charge to your bill without informing you: CCPA acts against 41 restaurants” mint - money · 20 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.