<p>The Bruhat Bengaluru Hotels Association on Thursday demanded that the 18% GST levied on outdoor catering be reduced to 5%. </p>.<p>The demand was made when a delegation of the association members met the Union finance minister, Arun Jaitley in New Delhi. </p>.<p>“In restaurants, food is served at 5% GST, but, the same food is served to banquets, events, outdoor, indoor and other catering at 18%. This abnormal GST is a burden to customers. Even restaurant owners are facing a lot of problems. So, the government should reduce the banquet GST to 5%,” wrote the association in a letter to the Union finance minister, a copy of which is with DH.</p>.<p>The association further pointed out in the letter that there is a difference in rates of cooking gas. For domestic gas the GST levied is at 5% and for commercial gas it is at 18%. According to the association, this needs to be rectified at the earliest, and be made 5% across the board.</p>.<p>"The idea of GST is one nation, one tax. But, here the same food is charged at different rates. The food served at restaurants draws 5% GST, but, when the same food is served at banquet halls the GST is 18%. Jaitley has understood the demand and assured us that it will be considered at the earliest. He agreed that a lot of illegal activities were happening because of this, which needs to be rectified,” P C Rao, the association's vice president and chairman - statutory laws, told DH from Delhi. </p>.<p>The association members said many events are hosted across the country during various occasions. So, 18% GST is a huge burden on customers because most caterers belong to the unorganised sector.</p>.<p>According to estimates, there are over 50,000 caterers in Karnataka, of which around 1,000 are in Bengaluru. But, just 25% are in the organised sector. Many customers are not aware of the unorganised sector caterers. When the customers pay up along with taxes, the caterers pocket the amount.</p>.<p>Veerendra Kamat, the association's treasurer said that as caterers are not making bills, there is widespread swindling of money. So, to make the whole sector organised, the government should levy 5% GST. The customers should insist on bills, he said.</p>.<p>P C Rao added that once the GST is made 5%, the association will take all measures to ensure that all caterers are registered.</p>
<p>The Bruhat Bengaluru Hotels Association on Thursday demanded that the 18% GST levied on outdoor catering be reduced to 5%. </p>.<p>The demand was made when a delegation of the association members met the Union finance minister, Arun Jaitley in New Delhi. </p>.<p>“In restaurants, food is served at 5% GST, but, the same food is served to banquets, events, outdoor, indoor and other catering at 18%. This abnormal GST is a burden to customers. Even restaurant owners are facing a lot of problems. So, the government should reduce the banquet GST to 5%,” wrote the association in a letter to the Union finance minister, a copy of which is with DH.</p>.<p>The association further pointed out in the letter that there is a difference in rates of cooking gas. For domestic gas the GST levied is at 5% and for commercial gas it is at 18%. According to the association, this needs to be rectified at the earliest, and be made 5% across the board.</p>.<p>"The idea of GST is one nation, one tax. But, here the same food is charged at different rates. The food served at restaurants draws 5% GST, but, when the same food is served at banquet halls the GST is 18%. Jaitley has understood the demand and assured us that it will be considered at the earliest. He agreed that a lot of illegal activities were happening because of this, which needs to be rectified,” P C Rao, the association's vice president and chairman - statutory laws, told DH from Delhi. </p>.<p>The association members said many events are hosted across the country during various occasions. So, 18% GST is a huge burden on customers because most caterers belong to the unorganised sector.</p>.<p>According to estimates, there are over 50,000 caterers in Karnataka, of which around 1,000 are in Bengaluru. But, just 25% are in the organised sector. Many customers are not aware of the unorganised sector caterers. When the customers pay up along with taxes, the caterers pocket the amount.</p>.<p>Veerendra Kamat, the association's treasurer said that as caterers are not making bills, there is widespread swindling of money. So, to make the whole sector organised, the government should levy 5% GST. The customers should insist on bills, he said.</p>.<p>P C Rao added that once the GST is made 5%, the association will take all measures to ensure that all caterers are registered.</p>
