Subway, KFC, Pizza Hut Questioned Over GST; Did You Get GST Rate Cut Benefits?

National Anti-Profiteering Authority will take strict action against those businesses, which are cheating customers.

0

Govt. 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.

GST benefits should reach the end-user
GST benefits should reach the end-user

Have you received GST rate cut benefits on these 100 items?

Subway, KFC, Pizza Hut In Trouble?

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%.

A Yum Restaurants spokesperson said, “We will extend our fullest cooperation to the authorities on any inquiry they may have. We are awaiting further details from the authorities and are unable to comment further at the moment.”

Subway spokesperson said, “Subway Systems India Pvt. Ltd is fully cooperating with the national anti-profiteering group in its investigation.”

Heavy Fines For Businesses If GST Benefits Not Passed

Meanwhile 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.

This new diktat has been issued for 100 items, on which GST was reduced from 28% to various lower tax brackets last month.

NAPA has already informed Central Board of Indirect Taxes and Customs (CBIC) to keep a close watch on the price of commodities.

Infact, if NAPA finds that any business is charging more, then under Rule 128 of central GST, they can take the case suo-moto, and punish the concerned business.

An official said, “Our mandate is to not monitor prices. We just want to ensure that the benefit of the prices are passed on to the consumer,”

These are the 100+ products on which GST has been reduced, and you should report the matter to NAPA in case you observe that the business is not passing on the benefits.

For online complaints, you can visit www.naa.gov.in

Checkout this detailed post on what to do, in such case.

Leave A Reply

Your email address will not be published.

who's online