No Mandatory Service Charge: What The New Consumer Rules Mean For You

Ever felt awkward asking a restaurant to remove “service charge” from your bill?

You don’t have to anymore.

Under consumer protection guidelines, hotels and restaurants cannot add service charge automatically or by default to your food bill. It must be voluntary — not forced.

Here’s what the rules clearly say:

• No hotel or restaurant can add service charge automatically.

• Service charge cannot be collected under another name.

• Consumers must be informed it is optional.

• You cannot be denied entry or service for refusing to pay it.

• Service charge cannot be added and then taxed under GST.

In simple terms: service charge is your choice.

Why this matters: For Gen-Z diners and young professionals eating out frequently, this rule protects transparency in billing. A 10–15% service charge can significantly inflate the total, especially for group outings.

There’s also a broader fairness issue. Clear pricing builds trust between businesses and customers. When optional charges are presented as compulsory, that trust erodes.

If you see a service charge added without consent, you have the right to request removal. Restaurants cannot penalise you for it.

Next time you see that extra line on your bill — remember: it’s optional, not mandatory.