NEW DELHI: Restaurants cannot add a'service charge' to food bills,  however, consumers can provide "tips" separately at their discretion, said Food & Consumer Affairs Minister Piyush Goyal.

Goyal asserted that restaurant owners are free to raise prices on their food menu if they want to give greater compensation to their employees because there are no price regulations in the country. He also dismissed restaurant owners' claims that eliminating the service charge would cause them to lose money.

The government will soon provide a legal framework to prevent restaurants from charging service charges on consumers because the practise is "unfair."  the consumer affairs ministry said.

Customers cannot be forced to accept additional benefits if you believe they should be provided to employees. In response to a question on restaurant service charges, Goyal remarked, "You may raise rates to give hikes." The minister stated that the government was receiving consumer complaints about the service charge imposed by restaurants. "You are free to give staff raises and raise rates. But how will consumers know the real price if there is a hidden cost?" he asked.

People can leave tips if they find services satisfactory and they can do so in the future, he said. The Department of Consumer Affairs held a meeting with representatives from restaurant associations and consumers on Thursday.

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