McDonald’s Gives Explanation On Why A Customer Was Charged Same Amount After GST Reduction

7:14 pm 16 Nov, 2017

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No cut in restaurant bills even after the government slashed GST rate on eateries to 5 percent from 18 percent? If you can recollect an old bill from an eatery or restaurant you last visited and compare it with the new one, the one which is generated after the new GST rate came into effect, you will surprise to find the new GST rate may not reflect in your new restaurant bill.

 

While the new GST rate came into effect from Wednesday, it is said that despite the rate cut, the total bill amount at eateries remains the same as before.

There has been reports that some consumers complain that the total bill amount at restaurants remains the same, meaning no cheaper, even after the government has slashed the rate. One such consumer by name Amogh Chaphalkar was recently outraged at the fast food restaurant chain McDonald’s India for not passing on the benefits of the latest GST rate cut to customers.


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He took to Twitter to complain about it by posting a picture, comparing an old bill with a new one, to show that McDonald’s had raised its prices even after the new rate.

This is what he has tweeted and posted on the micro-blogging site.

 

 

McDonald’s India quickly took to its official Twitter handle and responded to Amogh’s complain.

Defending its stand, the fast food chain said that despite the rate cut in GST, their operating costs have gone up up due to removal of input tax credit.



 

 

 

The restaurant further clarified that they have structured the changes in such a manner keeping in mind the customer’s convenience.

 


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The GST Council, on November 10, decided to slash rates on restaurants to a flat 5 per cent from the previous 12 and 18 per cent for non-AC and AC restaurants respectively. At the same time, it decided to take away the benefit of input tax credit for restaurants with an annual revenue of Rs 1 crore or more as they were not passing on the benefit of lower tax incidence to consumers.


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