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Restaurant association demand uniform GST rates for AC and Non AC restaurants

The Indian hotels and on restaurant association (AHAR) has once again appealed to the government to uniform the GST tax levied for AC, Non Ac and Permit room. The delegation of the association met Sudhir Mungantiwar, State finance minister of the state and appealed to him to look into the same. They have requested the government to look into the taxation as maximum of Mumbaikars today use the AC restaurants and to charge the GST rate at 18 pc is not fare. The GST rate of non ac restaurant is 12 pc. They have requested to uniform the rates at 12 pc, as the burden will be on the common man to pay more due to the higher rate of taxes. Meanwhile AHAR representatives met number of government officials and the concerned authorities to keep their say
and uniform the rates.

One of the concern raised is that the necessity like food is charged at 18 pc, while the rate of tax on gold at 3%, keeping it close to the
current tax incidence of about 2% on the precious metals across most states in the country.

AHAR president Adarsh Shetty said, “We are completely in favor of GST and are happy that such a move has been taken by the government. But we require uniformity in the tax slab. The rates need to be same for AC and Non AC restaurants, as Mumbaikars use the AC restaurant the most. Why do we need to have different tax rate. The burden of extra money would be on the common man to pay and is unfair. The luxury items like gold are charged less, whereas food is charged at much higher rate.”

Even the delegation of The Federation of Hotels Restaurants Association of India (FHRAI) has presented a representation to Union
Finance Ministry officials demanding uniform GST rates for Hospitality Industry. Highlighting that the GST slab will adversely impact the hospitality and tourism industry, the delegation requested the Government to relook at the present proposal and advocated a uniform Hospitality GST at 12 per cent across the country.

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