Fast-food majors are raising the base price of items on the menu to offset losses they are likely to incur after the cut in Goods and Services Tax (GST) rates, reports the Times of India.
The 23rd GST Council Meet revised the rates of AC and non-AC restaurants to 5 percent from 18. The eateries were required to comply with the revised rates from November 15.
The Council, along with the tax revision, has done away with the input tax credit (ITC) benefit for eateries. Click to read more
Some restaurants pass on a marginal cut to patrons, while others raise prices or reimpose service charge
There has been no sharp drop in restaurant bills, matching the slashing of GST from 18% to 5%, and hoteliers cite a variety of reasons.
A day after the cut went into effect on Wednesday, restaurant chains in Delhi either retained old prices or passed on a marginal benefit, while in Bengaluru, some retained the food price — increasing the tax savings for patrons — but others reimposed a service charge that had been removed when GST of 18% came into force. Click to read more
The GST council of India on November 10 revised the tax rates on around 178 items, ranging from chewing gum to beauty products. The GST rates on these items were shifted from the top tax bracket of 28 per cent to 18 per cent or lesser. The most important decision was to change the tax rate on AC and non-AC restaurants to 5 per cent from the earlier 18 per cent rate. All the new rates will be effective from November 15. Click to read more
Cabinet nod for National Anti-profiteering Authority; entity to ensure fair pricing
A day after the Centre notified the latest set of cuts in the rate of tax to be levied on a wide range of goods as part of the Goods and Services Tax (GST), the Union Cabinet on Thursday approved the creation of the National Anti-profiteering Authority to ensure that businesses pass on the benefits of GST to consumers. Click to read more
The Union Cabinet on Thursday approved the setting up of the anti-profiteering authority under the Goods and Services Tax (GST) regime in a bid to ensure that the benefit of lower rates is passed on to consumers.
The Authority will be be composed of a chairman and four technical members.
“This paves the way for the immediate establishment of the National Anti-profiteering Authority (NAA) which is mandated to ensure that the benefits of the reduction in GST rates are passed on to the ultimate consumers by way of a reduction in prices,” a Finance Ministry release said here. Click to read more
Initiated in 1986 during the governance of Rajiv Gandhi by Finance Minister Vishwanath Pratap Singh, GST (Goods and Services Tax) had a very long journey. With multiple governments changing, while GST was picked up for discussion in the parliament, the implementation schedule kept changing. While it was known that to accelerate India’s economic growth, taxation like GST was essential, post 1986 GST discussion got momentum in 1991 during the government of P V Narasimha Rao. The then Finance Minister, Manmohan Singh initiated the discussion on Value Added Tax at state level and later GST was given a go ahead in the year 1999 during the governance of then Prime Minister AtalBihari Vajpayee. Click to read more
Angry that the stated benefits of GST have not reached you yet as a consumer? Perhaps it’s the restaurant bill, which hits your pocket just as much as it did when 18 per cent GST was levied on AC restaurants. Maybe it’s regarding the sundry items you need for everyday living. Now, the government has come up with measures to stop businesses from giving you a raw deal.
The Union Cabinet on Thursday approved the setting up of the anti-profiteering authority under the Goods and Services Tax (GST) regime in a bid to ensure that the benefit of lower rates is passed on to consumers. Click to read more
The Union Cabinet on Thursday approved the setting up of a National Anti-Profiteering Authority, a body with an overarching mandate to ensure that the reduction in tax rates under the new Goods and Services Tax (GST) regime gets passed on to consumers by way of lower prices. The anti-profiteering framework under the new indirect tax regime consists of the National Anti-Profiteering Authority at the top, a standing committee, screening committees in every state and Directorate General of Safeguards in the Central Board of Excise & Customs (CBEC). Click to read more
The Cabinet’s nod for setting up the National Anti-Profiteering Authority (NAA) provided for in the goods and services tax (GST) law is a testimony to the government’s determination that consumers should reap the full benefit of the reduction GST has brought about in the tax burden on goods and services. Activation of this provision in the law might have been avoided, had trade and industry passed on the eliminated cascading of taxes to consumers by way of lower prices. Click to read more