Eating out will cost more; hoteliers want GST rate reduced

Eating out will cost more; hoteliers want GST rate reduced

Eating out will cost more; hoteliers want GST rate reduced

From Saturday, dining out would be expensi­ve. Hotel and restaurant ow­n­e­rs have already warned pe­ople of the increase in pr­i­ces under the GST regime co­ming into effect from July 1.

Hoteliers and restaurant owners opine that the government is encouraging people to cook and eat at home rather than dining out. “In a city like Bengaluru, where eating out is cheaper than cooking at home, GST could change this in future,” said Veerendra N Kamat, treasurer, Bruhat Bengaluru Hotels Association (BBHA).

He said the government is imposing 5% GST on sweets and 12% GST on idli, dosa and other food items. There is no balance in the taxation system, he said.

“There are many working couples who prefer to buy breakfast rather than cook at home. Also, every day, one can see many students and working professionals at darshinis, having a thali between Rs 30 and Rs 50 with pulao or rice bath. But now, with GST, this population will come down,” said a restaurant owner.

“We will send a memorandum to the state and the Union governments urging them to reduce GST on AC restaurants from 18% to 12%. The last time we went on strike, the industry and customers suffered, let alone the government, which also incurred losses. We want the government to deliberate on the varied taxation on food items,” Kamat said.

The imposition of 18% GST on star hotels and AC restaurants is also worrying the industry. They are worried about the kind of customers entering star hotels and AC restaurants. “Earlier, due to difference in rates, the kind of people visiting different types of restaurants was known. But what will happen now? We will have to wait and watch,” said another association member. 

Book dealers also worried

Those dealing with books and stationery are also worried as the cost of these items will increase from July 1. Those dealing with second hand books are also concerned. They point out that getting books and selling them to other outlets will now become difficult. This has also left students worried as their reading material will cost more.