RESTAURANTS HIKES IN PRICES OF MEAL BY 10 %, GST DECLINES BUT PRICES GOING UP

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As per the news restaurant chains said that without an input tax credit(ITC), Reduction in GST causes hike in their prices of meal.


  • India’s food and beverage retail industry now hike in their meal prices for all customers, govt bringing down GST to 12% from 18%.
  • All cafe chains like Chaayos, Social, Smoke House Deli, Wow Momos now hike in their prices for customers 8 to 10 percent.
  • As per they said without ITC, GST rate declines effects the increase in bill prices.
  • In earlier tax regime only 5 % tax on food, and on GST it is 12%, so the prices goes up.
  • Under the current 18 percent tax rate, restaurants get to claim on the taxes they pay on various things such as processed food, rent, electricity, and transportation.
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