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Pay extra on every dining from today
Posted on: 01/Jul/2017 12:51:47 PM
Be ready for spicy dining at restaurants starting from this weekend. Its not about the spice added to it, but about the chilli added to it as added tax. Today, the GST tax is set to get rolled out. And the tax on air-conditioned restaurants is 18 percent and for non-AC restaurants, a tax of 12 percent is applicable. For petty hotels that make Rs 75 lakh as annual income should pay 5 percent tax extra.
The computers used in these restaurants shall be configured according to the new tax rate. At the time of opening on Saturday (today), at all outlets, the tax must have been changed and the respective records should be changed in all their internal records. Authorities are likely to conduct a check in the city to know if the rules are adhered, says an account manager of a leading eatery. At present, the bill includes the cost of food, service tax, food tax, cess, VAT and service tax. Eradicating all these, here comes a single tax for the entire menu. According to hoteliers, this move will have an adverse effect on customers and their responses.
Rs 10 extra on every dining
Masala dosa priced Rs 50 will henceforth be priced Rs 55. Briyani at local eateries will be increased in rate from Rs 100 to Rs 110. There will be 10 percent increase in price of food items. So, with every dining, customers will be bound to spend Rs 10 extra. This will badly hit all students and bachelors who depend on hotel food, says a hotelier.
Speaking about this, K. Srinivasan, the Secretary of Tamil Nadu Hotels and Restaurants Association said GST will impact petty restaurants that make annual income of more than Rs 75 lakh.
The tax we used to pay was 0.5 to 0.75 percent. Now, this is increased to 5 percent. Consumers usually do not pay any sort of tax. Further, this will cause mushrooming of small restaurants that make lesser than Rs 20 lakh annual income, as they are not bound to pay tax of any sort. This will also leave way for many unauthorized players enter the industry. As per the advisor of South India Hotel Association, people will switch to roadside foods because of their cheaper rate. However, due to lack of hygiene, this will result in increased health problems.
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