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.