Chennai: Five days after GST (Goods and Service Tax) council slashed GST on hotel food items to five per cent, restaurant owners in the city who cried foul over 18 per cent GST, remain stubborn about not passing on the benefit of the tax cut to their customers. Many AC restaurants in the city have been caught using their guile to fleece customers.
On the day the GST council, which is steering the new tax regime, announced the tax cut, some restaurants increased base prices of food items. “Many restaurants billed Rs 130 for a meal, including 18 per cent GST. After the tax cut, the rates should have been reduced to Rs 100. But, instead of reducing the total cost, they kept collecting Rs 130 by increasing the base price”, M. Mohan, a resident of Valasaravakkam said.
“When we enquired about the hike of base price of food items, a restaurant management gave an arrogant response”, Mohan said. A large number of discontented customers took to social media to express their resentment. Social media are being flooded with photographs of such fraudulent practices by restaurant bills and they are being trolled.
When asked about the malpractices of popular restaurant brands, President of Chennai Restaurants Association, M. Ravi, said that the association has asked the member restaurants to follow GST rules strictly and reduce rates accordingly. “Except for a few restaurants, most of the restaurants are following new tax and reduced GST on food items. We prodded others to follow the same. Now almost all the restaurants have reduced prices”, he added.
Ravi also said that if a customer comes across any such malpractice, he can inform the association. “They can dial 044-28591500 and lodge complaints. We will take necessary action on deviating restaurants”, he said. However, he admitted that international food chains have refused to lower the rates. “International restaurant chains are not part of our association. So we could not compel them. But we have requested them also to reduce the prices. Hope they budge”, he said.
