GST Has Cut Restaurant Business By 35%

Eating out at a restaurant has become an indulgence after the implementation of goods and services tax (GST), as business is down by an estimated 35%, say restaurateurs across Gujarat. Customers seem to be feeling the pinch of 18% GST imposed on the service sector.GST Has Cut Restaurant Business By 35% Narendra Somani president of the Hotels and Restaurants Association said “Restaurant business has certainly dipped after GST, even over weekends. Regular customers also don’t visit restaurants as often as they used to.”GST Has Cut Restaurant Business By 35% Dilip Thakkar, a partner at a city-based restaurant said “A number of restaurants have seen a 50% hit to business. “With 18% tax, bills have been rounded up and prices have risen by 20% at most restaurants. For instance, a thaali which earlier cost Rs 300 will now be billed at Rs 360. A family of four visiting four times a month now visits just once or twice a month.” Some restaurants opted for the composite scheme and did not passed on the tax burden on consumers. "Despite opting for composite scheme where our tax burden reduces, our business is down by at least 15-20%. Customers are price-sensitive and we cannot increase prices else, or we will further face losses," said Aron Fernandes, the proprietor of a restaurant in Chandkheda. Even in Surat, business is down by at least 20%-25%, according to South Gujarat Hotel and Restaurant Association (SHARA) vice president Sanat Reliya. Home delivery and takeaway businesses are also badly hit and have declined by at least 50%.GST Has Cut Restaurant Business By 35%