Warm welcome for 5 per cent GST

Mumbai: With the city-based hotels and restaurants’s body AHAR (Indian Hotel and Restaurant Association) announcing that they will implement the central government’s decision to reduce the Goods and Service Tax (GST) to 5 per cent from the earlier 18 per cent, dining out and takeaways are set to get cheaper. The Asian Age went to a few restaurants around the city and found that while some of the restaurants have indeed cut down on the GST tax, a few others are not charging GST for the time being as they need time to sort out the new rates.

Talking to The Asian Age, the hotel manager of Sindhudurg restaurant in Dadar, Raju Sawat, said, “We are not charging GST at the moment as we are still unable to find the solution for it. We will need at least a day’s time to implement 5 per cent rule instead of the 18 per cent one.”

The council has prescribed a uniform 5 per cent slab for all the restaurants, including both air-conditioned and non-AC ones. Earlier, GST was charged at 12 per cent on non air-conditioned restaurants and at 18 per cent on air-conditioned ones. The restaurants under AHAR had alleged that the higher tax slab had adversely affected their business.

Yedu Kumar, manager, New Jaihind Restaurant, Masjid Bunder, said, “We are happy with the decision as now, our customers who were earlier scared of the high prices are also coming in to enjoy the food. So, it’s a win-win for them as well as us.”

Izrahil  Mallik, manager, Zam Zam, a sweet shop on Mohammad Ali Road, “We are charging 5 per cent GST on sweets, on which we used to charge 18 per cent before. We have reduced our charges after the implementation of the new rule.”

On the other hand, president of AHAR, Adarsh Shetty, said, “Restaurant businesses was dipping by almost 30 per cent, especially in case of home deliveries and parcel services. Now, we hope to see some relief for our business.”

REFORMS IN PLACE

• A uniform 5 per cent tax is being levied on all the restaurants without the distinction of them having and an air-conditioned space.
• The state Legal Metrology Department will be keeping tabs on restaurants to ensure that they do not charge the customers more than the state-prescribed 5 per cent GST.
• Restaurants should ensure that the tax breakdown is mentioned on the bill given to customers before the final amount.