Government of India has now asked National Anti-Profiteering Authority (NAPA) to act strictly against those businesses, which are not passing GST rate cut benefits to the end users.
As per reports coming in, leading food brands such as Subway, KFC, Pizza Hut and others are already being probed on this.Read more ↓
Have you received GST rate cut benefits on these 100 items?
National Anti-Profiteering Authority has started questioning leading food brands over GST rate benefits.
Subway, Yum Restaurants owned Pizza Hut and KFC have confirmed that the probe is on, and they are extending their full support.
These leading food brands have been questioned by National Anti-Profiteering Authority (NAPA) due to partial GST benefits being rolled out to the end users. As per NAPA, these restaurants and quick service food outlets have given only partial benefits to the users, and not full.
In November last year, GST Council had reduced GST applied on food served at AC Restaurants to 5% from 18%; and to 5% from 12% for non-AC restaurants.
What Is The Issue?
As per NAPA’s investigation, these leading food chains have not reduced prices of premium food items, and they are still being charged at 18% GST for AC and 12% for non-AC ambiance.
On their defense, the food chains are claiming that the rollback of input tax credit (ITC) have reduced their profitability by 10-18%.
National Anti-Profiteering Authority have made clear that businesses can be charged heavy fines, if the GST rate cut benefits are not passed on the end users……….Read More>>