GST Rates Have Been Slashed But McDonald’s Bill Rates Still The Same: Twitter Totally Not Lovin’ It

By Shipra John -
0
GST Rates Have Been Slashed But McDonald’s Bill Rates Still The Same: Twitter Totally Not Lovin’ It

It is true that after the Modi Government introduced the GST rates, many people had a hard time spending extra money from their pocket even when they go to low budget restaurants.

So, a week ago the government decided to slash the GST rates from 18% to 5% for non-AC restaurants and 18% for air-conditioned restaurants. Everyone expected the famous McDonald outlet to reduce their MRP rates but that was not the case, as customers could not find any difference even after the deduction.

McDonaldThe GST (Goods and Services Tax) board cut the tax rate for eateries and different merchandise a week ago.

Be that as it may, eateries won’t be profited from the info assess credit, an office to set off duty paid on contributions with definite expense. Other than that the duty rates for 200 items were likewise slashed.

Be that as it may, Twitterati’s did not seem to be happy with the new corrections. The greater part of them who were planning to see a lower charge in their bill were frustrated.

https://twitter.com/TraderEQFX/status/930761179378589697

Customers hit out at eateries tagging Finance Minister Arun Jaitley for higher bills while the GST was slashed. Twitter users were furious at fast food chains like McDonald’s and Starbucks and posted pictures of food bills before and after the GST rate deduction. Customers also additionally brought up that MRP (Maximum Retail Price) after the rate slash  practically made the aggregate bill about the same.

McDonald’s India rushed to react to the GST rate deduction saying that their expenses have really expanded as the legislature evacuated Input Tax Credit. Answering to a customer, McDonald’s India stated,

“The Government has brought down GST from 18% to 5%, but there has been a removal of Input Tax Credit. Due to this, our operating costs have gone up. However, keeping customer convenience in mind we have structured the changes in such a manner that total amount paid by the customer remains the same.”

Here’s what McDonald’s responded:

The advantage of input tax acknowledge for eateries for a yearly income of Rs 1 crore or more has been taken away as they didn’t pass the advantage of lower impose occurrence to customers. While diminishing GST from 18 percent to 5 percent, Jaitley stated, “Since they (restaurants) did not pass on the benefit they are not entitled to the benefit (any longer).” Input impose credit is the point at which a maker pays the assessment on his yield, they can deduct the expense beforehand paid on the information they bought.

Rate this post

NOTE:We inform you that we are not owner of any of the products, images or any other products displaying on our website. But all the articles are written by us and we owned them. If you found any image or product that found under your copyrights then please feel free to CONTACT US. We will remove that image or product as soon as possible. All the images are collected from Google.

RELATED ARTICLESMORE FROM AUTHOR