The Impact in Restaurant Sector With the passing of the Goods and Services Tax Bill, the nation’s Food and Beverage Industry has been left both flustered and fluttered. As because of indirect tax, this affects both the manufacturer and the customer. The impact of GST on Restaurant Industry is effectively seen in both categories– those who are working as restaurateurs (restaurant owners, businessmen, investors) as well as those that form part of the clientele (consumers ranging from cafe hoppers to fine diners).
With the GST coming into force, several state collected taxes like the value-added tax, entertainment tax, sales tax, service tax, purchase tax etc. have all been combined into a single transparent tax.
Benefits expected due to levy of GST on Restaurant Industry
- Restaurants and hotels may increase their overall service as a single tax will be processed at checkout.
- Finally consumers are free from having to calculate various taxes on the final bill.
- the payment system is going to be more effective and faster, with a single tax under GST for restaurants
- Overall, trading on several commodities that was not regulated earlier has become more structured, for example, oilseeds, pulses and cereals have been put under the light of a structured tax, and therefore can be accessed better in terms of both manufacture and consumption.
But are you aware that the GST could be a good thing?
- Instead of scanning several rates of taxes and duties, a customer can save a small percentage every time he eats out because of a standard value charged (under the current tax regime this value could come down to 18% on the total value of the bill).
- As a consumer, the GST on restaurant meals has made dining out more pocket-friendly with a single clear 18% charge as opposed to the earlier multiple 20-24% charges that were cumulatively levied.
Makes Better Days for Business Owners?
As an owner of a restaurant business, one may be argue with the several taxes from the purchase of raw materials right till selling the final product to the consumer. How does the GST on Restaurant Industry affect this target market.Raw materials can be procured at finance rates from agriculturists and farmers at a single stroke instead of owners having to negotiate – taxes shall remain uniform throughout states thus making the competition balanced. The overall cost of procuring goods will thus decrease substantially, Using Asimot POS GST Feature makes the restaurant business a viable and easily manageable.
