GST Insight – Zorawar Kalra, Founder and MD, Massive Restaurants
The long term benefits is that it will bring simplicity and clarity to the tax structure, as diners will be able to know the exact amount of tax paid by them for a particular meal. Moreover, as everything under food is now covered under GST, which was earlier not covered under the VAT and sales tax structure, companies are able to take a larger input for the tax that they have to pay. However, I wish that liquor was also a part of GST and we hope that it soon becomes a part of GST.
There are no grave challenges to GST, just that the hospitality segment now has to operate with two different bills – food has a separate set of taxes than liquor. This can become confusing for the guests. However, we have trained our staff, across our restaurants in the country, well to dispel such confusion.
One way to resolve these challenges is that the government should have centers set up for customers to have better understanding of GST, perform workshops at various restaurants and officers of different hospitality companies, so that everyone is equipped with the correct information to better understand GST, as it will help to resolve the ambiguity in the minds of the consumer. Restaurant bodies should work with governmental agencies to get better clarity about the GST structure and work towards including liquor under the ambit of the GST as it will streamline everything and reduce confusion.