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  • Category: Miscellaneous

    By imposing 28 percent GST at eateries, will there be slump at eating outside henceforth ?

    For every family when it comes Sunday or any Holiday, they would prefer eating at a Restaurant for the dinner and that has been going on in many homes across the country. But from July the Central government which is imposing GST of 28 percent tax on eateries, the hotel bill would become fat. For example if you eat for 1000 rupees the tax would be 280 and the total bill will be 1280. I think the middle class people who have the habit of going to hotel at weekends would shun the plans and may eat at home itself. What is your view on this ?
  • #601161
    I don't think so Mr. Mohan. When the the cost of one plate Idly at Rs.10/- we used to go to hotel and eat. Now it is costing Rs.40/- per plate. But the eaters increased but not decreased. This is because of the change in the thinking of the people. Earlier days we used to think of savings. These days the younger generation will never think of that. Let us enjoy today. About tomorrow there is time to think.
    Petrol rate has gone more than Rs. 70/- per litre. Who stopped using cars and bikes. If you see in Hyderabad, every house is having minimum one bike. There are plenty of cars. Nobody prefer using public transport.
    So the tax part may not play any major role in the habit of eating out.
    Housewives are also preferring going out at least once a week as they may get a holiday like their counterparts.
    So I don't expect any reduction in expenses or eating out.

    always confident

  • #601166
    But when a family plans eating out, the bill paid would be more and the taxing would be commensurate with billing and that is the burden which the house hod would definitely stop.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #601210
    This may not be affecting the people much only thing is the middle class going to restaurants once in a week may go may be once in 10 days. So business will not be affected much.

    One interesting thing is most of the people even well offs are habitual of taking snacks etc at roadside vendors who take only cash and do not bother for any tax including the imminent GST.
    So this parallel business will be thriving as it is.

    In nutshell there may not be significant change in the new tax regime.

    Another important thing is as GST is basically for rationalization and ease of business, may be the basic cost of material and services would be recalculated by the business houses and net cost to the customer may not change so much. This may look like a wishful thinking but to secure their business the shopkeepers will have to adopt those competitive measures.

    Knowledge is power.

  • #601235
    The Government should also offer free Duppatas along with imposing Goods and Services Tax (GST) so that a poor and daily wage earner should eat meal once a week and tie up the stomach with Duppatas for the rest of the week, since the expenditure will be expected to be way beyond our budget.

    Suppose, as an instance, I am just earning less than 6K a month and that doesn't include store keeping or bonus. My daily wage is 250/ day and on the top of that I wouldn't find or engage in jobs regularly since daily wages earning jobs are temporary out here and that accounts less 6K. If I pay for rice, let's say 20KG and that will cost me 600 to 700. Next comes, Aata, we need 20KG a month and that will cost 700 to 800. Then here comes finance expenditure for my sisters fees which cost 580/ month. Along with these, rents, electricity bills, water bills and etc... Then when I am unable to meet even my minimum requirements, how can I pay GST.

    Government should impose taxes to those individuals whose income is more or less than 10K.

    Instead of raising Social security schemes, and additional taxes, they should offer special skills training to increase employment. I have no idea what I am going to do next.

    Government should have some mercy on those poor daily wage earners.

    Hackers never learns but always wins!

  • #601237
    @#601235, I agree with you that we"...should offer special skills training and increase employment.... " instead of increasing social security schemes and raising taxes. I am always of the opinion that all round development and employment can solve most of our present issues . The government is doing a lot of focused efforts in that direction. But till that stage is reached social benefit schemes are needed to help the vulnerable sections of society.
    It is natural that the honest tax payer feels disappointed . Initially I also was feeling like that. Bu after getting more exposure I felt that there are people who really need such support. It is okay if a little bit of burden is passed on to us. That is how we can help in nation building and development.
    Regarding GST, though there may be some price rise in some of the common items, I feel that it will not deteriorate to the desperate situation as you fear. Many state governments are now taking steps to check price of essential food items and also are starting fair price canteens.

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