GST Insight – Adarsh Shetty, president, Indian Hotel and Restaurant Association (AHAR)
Our association is in favour of GST. In the long term, GST will lead to a more accurate accounting practice amongst restaurateurs, which in turn will facilitate in getting finance from bans for business development activities. We, however, feel that the restaurant segment was given a raw deal when it comes to the classification on the basis of non-airconditioned and airconditioned and liquor serving establishments, and the 12% and 18% GST slabs, respectively. Standalone hotels that have an AC section have to pay 18%. Customers who sit in the non-AC area or order for takeaway complain why they should pay 18% instead of 12%, which is the GST for a non-AC restaurant.
The operational issues will be known only after the 1st return filing in August 2017. These teething issues can be ironed out with the support from the Government.