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A Review of Billing Structure in the GST Regime with Special Reference to Restaurant Industry

ANWESH: International Journal of Management & Information Technology

Volume 6 Issue 1

Published: 2021
Author(s) Name: Jyoti Peswani and Alka Pandey | Author(s) Affiliation: Research Scholar, Chatrapati Shivaji Maharaj University, Panvel, Navi Mumbai, Maharashtra, India.
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Abstract

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The fastest growing industry is restaurants and food service companies in India. Therefore, the growth of the business is affected by the changes in the tax collection system. The introduction of Goods and Services tax has caused some perplexity among restaurant owners. Under previous tax collection system, the restaurant sector was burdened with multiple high costing taxes and reforms. Consumers used to pay VAT, service tax and additional service charges on each restaurant bill, but all extra and excessive charges were removed in GST. The research paper aims at studying the impact of GST on the restaurant industry by highlighting the benefits and drawbacks of the same with the help of a hypothetical example of a restaurant’s bill. The aim is to clearly explain the benefit it will have on the consumer’s pocket and on the restaurant owner’s cost of raw materials.

Keywords: Goods and services tax, Indian restaurant industry, Indirect taxation, Restaurant industry.

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