India Twitter users welcome 'optional' service charges at restaurants

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Many restaurants make it mandatory for people to pay a service charge, considered a tip

No-one likes paying extra money at restaurants but Indians often have no choice, because of restaurants adding a 10-15% service charge to the bill.

That could now change. Consumer Affairs Minister Ram Vilas Paswan tweeted on Monday that people could use their "discretion" on whether or not to pay the tip.

Twitter users have hailed the minister's announcement.

But an industry body said it would hit millions of workers.

Indians have been using social media to complain about restaurants which add a service charge to the overall bill.

The minister responded on Monday, telling people to pay the charge only when they were satisfied with the service.

Restaruants are billing service charges in addition to taxes. Service charge is optional . Consumer has a discretion to pay or not.Image source, Ram Vilas Paswan

Many on social media welcomed the announcement.

Fed up of the explanations given by restaurants for service charges.Just pay reasonable wages to your staff, guys.Other industries do it.Image source, Vir Sanghvi
Very good decision to make #ServiceCharge not mandatary. Finally, the loot of restaurants and hotels is checked! Kudos.Image source, Ravijot Singh
Heard most waiters say that #servicecharge is pocketed by management and not passed on to them. Good that govt says it is up to you to payImage source, Abhijit Majumder

But others felt that government should completely abolish the service charge to avoid confusion or friction.

@irvpaswan why are you leaving a gray area?Just make a clear ruling that no service tax is to B charged so dat there is no room for disputeImage source, Raman Chopra
Leaving the payment of #ServiceCharge to the discretion of customers can only lead to quarrels. Better ban it and let the customers pay tipsImage source, Visakh K

Restaurant owners, meanwhile, have criticised the minister's announcement, saying that it will affect industry workers.

Riyaaz Amlani, the president of the National Restaurant Association of India, told IANS news agency that the statement was "extremely detrimental to the employees", and would hit people's livelihoods.

"It is not just the owner but all the employees who are associated with a restaurant including the dishwasher, the caretaker, the toilet cleaner, all depend on service charge," he said.

Restaurants have also rejected allegations that they "pocket the service charge" and don't give it to their employees.