Government of India has clarified that the service charge is optional. If the customers are not happy with the service, they can refuse paying service charge at restaurants.
From over a long period of time, restaurants and hotel owners have started charging service tax along with other taxes in the bill. But, we customers due to lack of awareness pay the charges as an compulsory obligation to us. The government of India also announced this year that ‘service charge is optional’, If you are not satisfied with the services of the restaurants, then you can refuse to pay them.
Government Notification to refuse paying Service Charge at Restaurant
Government receives number of complaints from customers that restaurant owners charge near about 5 to 20 percent of service tax which they have to pay irrespective of the quality of services provided by them.
So, if you are not happy with services, refuse paying service charges at the restaurant. Service charge is optional and you are not bound to pay it.