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Some eateries switch to GST, many go slow

Many people who headed to grab a bite at a non-AC restaurant on Saturday, the first day into the Goods and Services Tax (GST) regime, feared a spike of 12 per cent on their bills. 

Published: 02nd July 2017 11:20 AM  |   Last Updated: 02nd July 2017 11:20 AM   |  A+A-

Ravi kumar, one of the customer looks at the GST bill at a Hotel in Shivajinagar in Bengaluru on Saturday / Vinod Kumar

By Express News Service

BENGALURU: Many people who headed to grab a bite at a non-AC restaurant on Saturday, the first day into the Goods and Services Tax (GST) regime, feared a spike of 12 per cent on their bills. But most diners found themselves paying VAT instead.

While some eateries have already started complying with GST, with their bills reflecting the tax, a few gave excuses that they still have the next two months to comply. Some did not even have a GSTIN (GST Identification Number). The restaurateurs were referring to the relaxation for filing transaction returns in July and August, but which will be mandatory from September.

Some restaurants continued to levy VAT and just told customers who demanded GST that their software wasn’t ready or that they hadn’t received the final GSTIN.

Ramdev Sagar, a non-air-conditioned restaurant in Thubarahalli, is strategically located near paying guest accommodations. Students and working professionals flock the restaurant on all days. The cashier at the hotel told Express, “We have applied for GSTIN but haven’t got it yet. In a day or two, we should start levying GST.”   

The Thalassery Restaurant chain has eight branches in the city. The cashier at the Marathahalli branch said they were still waiting to register. The same was the case with Sri Sai Darshini in the area. “We haven’t registered on the GST portal yet,” the cashier said.

However there were some restaurants which levied GST. Mavalli Tiffin Rooms, a popular restaurant chain, had to clarify in a tweet when one patron questioned the hike in prices of coffee. “Rate of coffee pre-GST was `36 (Lalbagh Road) (under composition scheme the tax component was 9%). Post GST, the rate is `38 (18%),” the tweet read.

MTR Restaurants clarified in a series of tweets that most of the raw materials they use is exempt under GST and that means there is no input credit. Previously, VAT was 4 per cent and service tax was 5.22 per cent, another tweet said.   

 Corner House, a popular ice cream parlour chain, also levied GST on its customers. Pravin B, member of Whitefield Rising, a citizens’ group, paid `168 for his icecream ‘Fruit Jackpot’ at the Residency Road branch that previously cost `150. Mast Kalandar, Domlur, also levied 12 per cent GST on all its bills. KC Das Pvt Ltd on Church Street also transitioned to the new taxation system.  



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