GST in Pune: Hike in food prices surprises citizens
Restaurants which have a turnover of less than ₹50 lakh are placed in the 5% rate slab. Restaurants which have a turnover higher than ₹50 lakh, but do not have ACs, will have to pay 12% GST. Restaurants which offer AC facilities to its customers will be charged 18% GST.Updated: Jul 01, 2017, 23:15 IST
This weekend with the GST implemented people witnessed price hikes in hotel and restaurants. People who wanted to unwind this weekend and celebrate would have to spend more than earlier because of the GST regime now. Al hotels and restaurant industries come under the ambit of the GST. Sixteen different taxes have now come under one unified tax system. Citizens now have to shell out more for hotels and travel.
Restaurants which have a turnover of less than ₹50 lakh are placed in the 5% rate slab. Restaurants which have a turnover higher than ₹50 lakh, but do not have ACs, will have to pay 12% GST. Restaurants which offer AC facilities to its customers will be charged 18% GST. The GST rates increase to 28% for luxury restaurants and the five-star hotels. So, what does it really mean for consumers? Roopali, a famous restaurant on FC road started charging 12% GST on coffee from Saturday, the very first day of the GST regime.
“We are surprised with the 12% hike in food prices in restaurants, this is the very first day of GST and it is a complete surprise for me,” said Priya Patil. I had to pay ₹5 extra for a cup of coffee, she added.
“Yes, we have started charging 12% GST from the very first day. It will benefit the economy,” said a cashier at Roopali. A similar situation was witnessed in various non AC restaurants in Pune.
Citizens will have to pay less at street food joints like ‘Khau Galli’ and local market stores, as the GST on these food joints is just 5 per cent. But if people decided to go to fast food joints like pizza shops, ice cream parlours which have AC facilities, the bill could be higher since the GST rates there would be 12%. If people want to have a really luxurious meal at a fancy five-star restaurant, they will be paying more tax. The tax rates applicable there will be 28%.