GST impact: Rates in hotels to change in 10 days’ time

Neha Basudkar
Sunday, 2 July 2017

Pune: With the implementation of GST from July 1, the prices mentioned in restaurants’ menu will be revised in ten days. Ganesh Shetty, President of Pune Hoteliers Association told Sakal Times on Sunday that the process will soon become smooth and streamlined.

However, many foodies from Pune eating out this weekend are unclear about the way their bill amount has been generated and the GST slab applicable for a particular restaurant. Some restaurants have to charge 12 per cent, while air conditioned restaurants charge 18 per cent. 

Pune: With the implementation of GST from July 1, the prices mentioned in restaurants’ menu will be revised in ten days. Ganesh Shetty, President of Pune Hoteliers Association told Sakal Times on Sunday that the process will soon become smooth and streamlined.

However, many foodies from Pune eating out this weekend are unclear about the way their bill amount has been generated and the GST slab applicable for a particular restaurant. Some restaurants have to charge 12 per cent, while air conditioned restaurants charge 18 per cent. 

Shetty said, “In the next ten days, the prices in the menu will be revised in all restaurants in the city. It will be done by the association, but it takes 3-4 hours to change the details in a restaurant’s computer system. In the coming days, the situation will become clear to the customers.”

Price hike
Some customers noticed that they are now paying more for the same quantity eaten at restaurants after implementation of GST.  Mayuresh Parikar, an engineer, after having lunch at Roopali at Fergusson College Road, said, “There is overall confusion about the way we were billed, so we had to ask the cashier about the tax that is levied on the total amount.”

Another Roopali customer, Vaibhav Shirole, said, “We can notice that the bill total is more, for example, if the bill is of Rs 1,000 then Rs 120 was taken extra for 12 per cent of GST on the total bill. But it is beneficial as there is only one tax which we have to pay, and it will take time to get used to it. Right now, I am confused as on what product, how much per cent is levied.”
 
AC and Non-AC dilemma
Naveen Shetty, Manager of Chawadi restaurant in Chinchwad said, “As of now the flow of people coming to our restaurant is normal, but we are worried once they get the broader picture of the GST, then they might stop coming to our restaurant.”

The restaurant has two sections - one is air-conditioned (AC section) while the other is not. Naveen said they are contemplating removal of ACs so as to be in the 12 per cent slab to attract customers.

Cashiers quizzed on GST
Hanuman More, Manager of Wadeshwar restaurant at FC Road, said, “There is normal rush of people, but they are unaware of the tax that they have to pay on their bill. They keep asking us about the extra money paid on a particular dish.”

He said that since ice cream, cold drinks and bottled water come under the 18 per cent tax slab, people get confused and ask the manager or cashier to explain this.

Cause of Confusion

 There is no clarity among customers on how GST has been implemented on a particular menu item.  
 Some restaurants have to charge 12 per cent while air conditioned restaurants charge 18 per cent.
 The rate for five-star restaurants is 28 per cent.
 The general feedback from customers is they are ready to pay extra tax, knowing that the money will go directly to the government.

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