Over the last few years eating outside have become really expensive. Gone are the days when Rs 100-200 was enough to have something good . But does this make us stop eating out ? Hell no. Also over the last few years a lot of new cafes and Restaurants have come up in our city and now we have a plenty of choice to empty our pocket on.
But on 1st july 2017 our government changed the whole tax system and made it to simple GST ( Goods and service Tax ). According to the new Tax system All AC Restaurants need to submit 18% GST ( 9% CGST + 9% SGST ). And all five-star restaurants will have to submit a luxury tax of 28% GST.
But on 11th November GST rate on restaurants slashed to 5%: A uniform 5 per cent tax will be levied for all restaurants, both air-conditioned and non-AC, Finance Minister Arun Jaitley said. Currently, a 12 per cent GST on the food bill is levied in non-AC restaurants and 18 per cent in air-conditioned ones.
It was a good news for all the food lover as now we don’t have to pay much because earlier we use to pay 18% tax and now its only 5%.
But then you will be shocked to know how these Restaurants are actually fooling us all. I’m sure you must have heard about the McDonald’s increasing the price to keep the amount same as before.
You will be shocked to know that many cafes and Restaurants are doing the same. They were suppose to take 5% GST from 15th novermber but its seen that many Restaurants are now updating their menus and have increased the price and now the price is infact more.
Today i went to a popular Restaurants to have lunch. When i entered I was told that from today they are starting their new menu. So out of curiosity I just downloaded their old menu from zomato which their were using before GST was 5% and compared the price and this is what I found.
Menu during 18% GST
Menu After 5% GST
Shocked ? Let me analyse Some of the Price.
Chicken momo :
Earlier : Rs 99 + ( 18% GST ) = Rs 99 + Rs 17.82 = Total Rs 116.82
Now : Rs 129 + ( 5% GST ) = Rs 129 + Rs 6.45 = Total 135.45
Aglio Et Oglio Pasta :
Earlier : Rs 149 + ( 18% GST ) = Rs 149 + Rs 26.82 = Total Rs 175.82
Now : Rs 199 + ( 5% GST ) = Rs 199 + Rs 9.95 = Total Rs 208.95
So now you decide whether prices have fallen after reduction of GST to 5% or not. So the next time you visit your favorite restaurants Don’t be surprised if you see “New Menus” .
PS : This post is just a general observation from a customer’s point of view. There might be other reasons for the sudden price increase as well, But as a customer we expected that after the reduction of GST to 5% eating outside would have been much cheaper. Neither I nor Snoozepost is defaming or trying to defame any cafe / restaurants. It is just a general observation made from a customer’s point of view and it might be completely wrong too.