No cut in restaurant bills even after GST slash? McDonald's explains
If you have an elephant's memory or are in the habit of keeping old bills, you may have realised that even after the government slashed GST (goods and services tax) rate on eateries to 5 per cent from 18 per cent , the GST cut may not reflect in your restaurant bill , at least at some restaurants.
After the new GST rate came into effect from Wednesday, some consumers took to social media to complain that despite the rate cut, the total bill amount remains same as before . One such customer was outraged that the fast food restaurant chain McDonald's India was not passing on the 'benefit' of the GST cut to customers and took to micro-blogging site Twitter to complain.
To recap, on November 10, the GST Council decided to slash rates on restaurants to a flat 5 per cent from the previous 12 and 18 per cent for non-AC and AC restaurants respectively. But at the same time, it decided to take away the benefit of input tax credit for restaurants with an annual revenue of Rs 1 crore or more as they were not passing on the benefit of lower tax incidence to consumers. "Since they (restaurants) did not pass on the benefit they are not entitled to the benefit (any longer)," finance minister Arun Jaitley had said.
After the new GST rate came into effect from Wednesday, some consumers took to social media to complain that despite the rate cut, the total bill amount remains same as before . One such customer was outraged that the fast food restaurant chain McDonald's India was not passing on the 'benefit' of the GST cut to customers and took to micro-blogging site Twitter to complain.
To recap, on November 10, the GST Council decided to slash rates on restaurants to a flat 5 per cent from the previous 12 and 18 per cent for non-AC and AC restaurants respectively. But at the same time, it decided to take away the benefit of input tax credit for restaurants with an annual revenue of Rs 1 crore or more as they were not passing on the benefit of lower tax incidence to consumers. "Since they (restaurants) did not pass on the benefit they are not entitled to the benefit (any longer)," finance minister Arun Jaitley had said.
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