McDonald’s Indian franchise drag government to court
December 3, 2019
- Rate of GST on food services by restaurants had been slashed to 5% in 2017.
- No ITC (Input Tax Credit) to be taken on raw material and other expenses.
- It means No set off against sales.
- National Anti-profiteering authority (NAA) had found Hardcastle Restaurant, franchise of McDonald’s, guilty.
- This franchise had not passed lower rate benefit to customers.
- This benefit was around ₹7.49 crore.
- Several complaints had been lodged against restaurant.
- The Hardcastle Restaurant Pvt Ltd quickly appealed against the decision.
- On this appeal, Bombay high court provided relief to Hardcastle Restaurant.
- Hardcastle, now has filed writ petition in the Gujrat High Court.
- While the customer is relieved, it increased tax expense of restaurant.
- It is being suggested by these businesses to provide option of paying higher tax with ITC.
- They are now looking forward for final ruling.
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