The interim budget was announced recently. Rahul Singh, President, National Restaurant Association of India (NRAI), says, “Much needed doles provided in the budget is surely a positive sign for the restaurant sector as it will drive consumption. However, the fundamental philosophy of GST remains lost in the regime which negates Input Tax Credit (ITC) on the premise of a lower output tax rate.
GST regime was brought in to achieve transparent transactions and ensure full compliance. But removal of ITC for the restaurant sector has brought in bad practices and unregulated transactions. Discriminatory removal of ITC has taken away the “vatability” of GST, passing on the burden of cascading tax to the consumers; thereby striking at the very root of the regime.
Single window clearance for the Indian cinema sector has manifested ease of doing business. Still, restaurants have been awaiting relief from the 15 odd licenses needed to serve a sandwich. Hope the government takes note that we are an industry worth Rs 3,52,000 crore, expected to grow to Rs 5,52,000 crore by 2022. For an industry of this size generating over 6 million jobs, government must recognize the increasing contribution by introduction of a uniform policy that includes single window clearance and reduction in no. of licenses for operating a restaurant.”
