Hotline: 1800 102 2007
X
Search Business Opportunities
Jul, 04 2017

Restaurants and stores implies different taxes on carbonated drinks

However, a 600ml bottle of a cola brand in a food joint cost Rs 60, with GST component cited at 18%. But the same sized bottle is available in a departmental store for Rs 35, though the GST cited is 40%.

The government’s move to tax fizzy drinks at 40% under Goods and Services Tax (GST) regime is being defeated at food joints, including branded chains. The peak GST rate of 28% is applicable to these drinks, with further 12% cess. The special cess is charged on carbonated cold drinks like Coke or Pepsi, to discourage consumption.

However, a 600ml bottle of a cola brand in a food joint cost Rs 60, with GST component cited at 18%. But the same sized bottle is available in a departmental store for Rs 35, though the GST cited is 40%.

The whole idea of having a higher tax on the drinks is being defeated because MRP has not been changed at both places so there is no difference for consumers. The peak rate is one of the measures to discourage consumption of such drinks considering their ill effect on health. Apart from this, the 12% cess, which goes to the Centre, is used to compensate states to make good the shortfall in revenue after shifting to GST.

Food joints generally charge a higher rate to account for other services provided along with the product. According to experts, this is because food joints include the drinks as a part of services offered from their end. The 18% GST applicable to their category of businesses is added on as the tax.

Malls and other outlets, on the other hand, sell carbonated drinks as individual products. So, the specific GST rate of 40% applicable on carbonated drinks is cited at such places.

Comment
Related opportunities
  • Quick Service Restaurants
    About Us: LAUNCHING FIRE ‘N’ GRILL BACK IN 2007 WAS A..
    Locations looking for expansion Punjab
    Establishment year 2007
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chandigarh Punjab
  • Preschools
    About Us: NO REVENUE SHARING MODEL, LOW INVETSMENT AND RISK, HIGH..
    Locations looking for expansion Haryana
    Establishment year 2010
    Franchising Launch Date 2015
    Investment size Rs. 2lac - 5lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • About Us: CMA is an international educational institution that specializes in..
    Locations looking for expansion Delhi
    Establishment year 1984
    Franchising Launch Date 2006
    Investment size Rs. 2lac - 5lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Gift Shops & Card Galleries
    About Us:   WK Life, a premier multinational corporate in Hong Kong,..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
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