‘GST amendment will help only small roadside vendors’


MUMBAI: The restaurant owners in Mumbai are not happy with a recent amendment in GST that hiked the annual turnover limit for exemption from Rs 50 lakh to Rs 75 lakh. They say it will benefit only small road-side vendors who make up to Rs 20,000 a day. All udupis and restaurants where a most Mumbaikars go will not benefit from such a marginal hike in exemption limit as turnover of all such restaurants was much higher, they said. According to them since all those above Rs 75 lakh turnover fell in 18% bracket, consumers will have to pay heavy tax on their food bills as in earlier tax regime all of them were paying a fixed 6.5% tax without much of a burden on consumers.

The restaurateurs want government to put all restaurants having upto Rs 3 crore annual turnover in the 5% fixed or composite tax bracket and those restaurants having air-conditioned enclosures in 12% bracket instead of 18%. “In 5% fixed tax bracket the tax will not be passed on to consumers by the restaurant owners while in 12% bracket for AC restaurants people will have to pay lesser,” said Adarsh Shetty, president of Ahar, association of over 8,000 restaurants and bars in Mumbai. Presently under GST, AC restaurants fall in 18% bracket. Ahar delegation met finance minister Sudhir Mungantiwar on Monday to apprise him of their demands and will be calling on Union finance minister Arun Jaitley this weekend.

 “Under the composite tax scheme restaurateurs will be able to pay direct 5% tax on their turnover rather than maintaining book of accounts,” Shetty said. There are over 24,000 restaurants, bars, eateries, vendors, and small hotels in Mumbai Metropolitan Region (MMR) of which nearly 3,000 are bars including around 1,000 fine-dine ones, 9,000 small road-side food vendors, and about 12,000 are small and medium budgeted restaurants Apart from this there are around 5,000 school, office, college, industrial and other privately run canteens or catering services. Around 90% of Mumbaikars eat with 70% of small/medium restaurants, vendors and eateries.
Source : http://timesofindia.indiatimes.com/city/mumbai/gst-amendment-will-help-only-small-roadside-vendors/articleshow/59117491.cms

One Reply to “‘GST amendment will help only small roadside vendors’”


    This demand of Restaurateurs is not justified. The very purpose of GST is to account for your revenues properly and take credit of your input GST. If govt. go by demands of Restaurateurs, the purpose would be defeated. It will leave scope for under declaring the revenue. This is not justified at all when India is going for all declared sales regime

Leave a Reply

Your email address will not be published.

Solve this and then Post Comment *

scroll to top