Pune: The confusion over the reduction in Goods and Services Tax (GST) at restaurants persists with people voicing concern over the increase in base prices of food items at several restaurant chains in the city.
A bill from popular fast food chain McDonald's showing that the base price of products has been increased went viral on social media on Thursday morning opening up a fresh round of debate on whether the benefits of lower GST are actually being passed on to the customers.
As the day progressed, many others began posting bills from various restaurant chains showing a difference in base prices of products between the last week and this week. People alleged that the restaurants are not passing down the benefits to customers even though the GST Council, in its latest meeting, brought down the output tax at restaurants to five per cent from 12 per cent and 18 per cent. However, the benefit of Input Tax Credit (ITC) for restaurants was withdrawn by the GST Council.
Sakal Times, in its report on November 16 had suggested that eating out may not get cheaper as restaurant chains and bigger restaurants may hike the menu prices to mitigate the losses they would face due to the withdrawal of ITC.
A lot of people took to the social media stating that while the total bill value at some restaurants has marginally gone down, the bills clearly show an increase in the base price of the eatables. A Sakal Times staffer, too, faced the issue at a popular coffee chain, wherein the price of Caffe Americano was Rs 95 (without tax) on November 13 and was hiked to Rs 104.76 on November 16.
“After adding 18 per cent GST to Rs 95, the total payable amount was
Rs 112. After the reduction in tax to five per cent, I ended up paying
Rs 110 for the same coffee. The reduction is marginal, busting the popular myth that eating out will be 13 per cent cheaper. On enquiry, I was told that the cost of the eatables available at the coffee chain has also been hiked substantially and that they would cost even more than they did under the 18 per cent slab,” the staffer said.
Sakal Times even tried to contact the GST helpline number announced by Minister for Food and Civil Supplies Girish Bapat on Tuesday to register complaints against restaurants that are not passing on the benefits of the lower tax rate to consumers.
While the helpline number was continuously busy, on getting through, the representative asked Sakal Times to send the complaint through an email with copies of the bills attached to the mail for further action. This has raised questions about the usefulness of the helpline number and whether the grievance cell will actually resolve complaints received by them.
