Wanna get our awesome news?

Subscribe to our newsletter!


Actually we won’t spam you and keep your personal data secure

As the voice of the Indian restaurant industry, we represent the interests of 500000+ restaurants & an industry valued @ USD 4 billion. Whether a chain or independent restaurant, the NRAI is here to help every step of the way. Join us!


Mixed picture on eating-out post GST rollout


It would take a while to gauge the impact on monthly budget, feel many

With a flood of messages on social media pouring in from everywhere on the change of pricing in restaurant bills, people seemed to be obsessed about the impact of GST on eating-out. But the ground report painted a mixed picture.

For Rahul Kedia, who often visits the Waterfront restaurant at R.K. Beach for a quick bite, the bill amount on Sunday evening did seem marginally higher, but was an easier-to-read one after the rollout of the GST on Saturday. “The last time I dined out at the restaurant, the bill was cluttered with various taxes. I paid a bill of ₹1,100 on Sunday and it had two neat tax segregation of Central and State GST at 9% each. The bill seemed to be more or less the same,” said the young DJ. Earlier a plethora of taxes was charged by the State (VAT and sales tax) and the Central government (service tax) in addition to the service charge on food bills. The GST rate for AC restaurants has been decided at 18% and for non-AC establishments at 12%.

At Vizag Drive-In, which falls under the non air-conditioned restaurant category coming under the GST slab of 12%, it was business as usual on Saturday and Sunday. “We were anticipating a drop in footfall this weekend as a result of GST, but we saw a good crowd coming in. Perhaps, it was because the tax rate for non-AC restaurants remained unaffected. The transition was smooth for us and we were ready by Saturday morning,” said P. Naga Rajesh, founder.

On the other hand, Sruthi Dinesh who went to dine at Vihar at Rushikonda on Sunday reported paying higher for her usual fare of chicken biryani. “The biryani here is my favourite and I come at least twice a week with friends. But I ended up paying ₹295 for one plate on Sunday while I paid ₹277 for the same on Thursday last,” she said.

Positive sentiments

At The Park, the decrease in taxes from 22 to 18% was met with positive sentiments. “I calculated my bill amount with the pre-GST tax rates and current one and realised this regime is cheaper. I may not make any conscious lifestyle changes, but maybe I will tend to go out more often,” said Swati Korapati, a bank executive.

Families felt that it would take a while to gauge the overall impact of the GST on their monthly budget since restaurant bills at different places attracted different tax slabs, while prices of other household products had seen a dip.

The weekend also saw all the pubs and bars in the city remain shut, which the hoteliers termed as the overlapping impact of GST rollout and liquor licence renewal. Most bars and pubs at hotels and restaurants did not open on Monday as well. “The revised GST rate had to be collected on old liquor stock. Also, earlier there was so sales tax on liquor, which now has been introduced as a result of which there is a change in pricing policy. Both these put together has resulted in the delay,” said Seshagiri Mantri of Vihar Hospitality.

Source: The Hindu

Recommended for you