Hotline: 1800 102 2007
Search Business Opportunities
Nov, 10 2017

HRAWI Welcomes the government proposal to reduce GST

Hotel industry has also appealed that the GST rate on in-house restaurant bills be levied at 12 per cent

Hotel and Restaurant Association of Western India (HRAWI) has welcomed the Government’s proposal to reduce the GST rate from 18 per cent to 12 per cent, making it uniform for both the air-conditioned (AC) and non AC restaurants. The Association has also appealed to the Govt. to continue providing the Input Tax Credit (ITC) to hotels and restaurants which will help them maintain the prices for the food and beverages on the menu. HRAWI has stated that despite the cost of operations having actually gone up, hotels and restaurants are maintaining old prices on the menu in fear of losing customers.

Dilip Datwani, President, HRAWI said “The move to bring down the GST rate for AC restaurants will definitely encourage the customer to eat out again. We welcome the proposal and thank the Government for considering our appeal. Presently all industries, and not just hotels and restaurants are trying to grapple with GST and the transitionary phase has been a very difficult phase for us. Continuing to provide ITC will help businesses to counter the rising prices on raw material and other utility costs. As of now, none of our vendors have reduced prices or passed on benefits of ITC to us. Additionally, post introduction of GST the costs of operations and raw materials have actually gone up. However many hotels and restaurants have continued offering F&B at the old prices but with the reduction in the GST rate, we will now be able to remain competitive”.

Dilip Datwani also said “As major expenses like electricity, rent, salaries, vegetables, poultry, seafood are exempt from GST, the input credit advantage for restaurants is negligible. So, it is our humble request to the Government that they consider revising the GST rate for restaurants that are part of hotels to 12 per cent in line with other stand-alone restaurants”.

Hotel industry has also appealed that the GST rate on in-house restaurant bills be levied at 12 per cent like it would be for all other stand-alone restaurants.

Related opportunities
  • Others Food Service
    In 2007 Xotik Frujus Pvt. Ltd., was incorporated and has ever since..
    Locations looking for expansion Maharashtra
    Establishment year 2007
    Franchising Launch Date 2008
    Investment size Rs. 10lac - 20lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Kandivali east Maharashtra
  • Fine Dine Restaurants
    About Us:  Meal O Drama is an award-winning modern bistro in..
    Locations looking for expansion New Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • GPS navigaiton & tracking system
    About Us: trackNOW Pvt Ltd. is the brainchild of a pair..
    Locations looking for expansion Gujarat
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • Others Dealers And Distributors
    About Us: WHAT IS TELE SHOPPING BUSINESS-: Teleshopping is a Business, Where..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2015
    Franchising Launch Date 2015
    Investment size Rs. 50 K - 2lac
    Space required 100 - 150 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Indore Madhya Pradesh
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities