Diners Perceptions of the Impact of GST on Quick Service Restaurants Food Costs and Quality of Services

Abstract

The Goods and Services Tax, which was implemented in 2017 by clubbing 17 indirect taxes bearing an objective of eliminating the retailers’ extra money-generating strategies in the country’s old tax regime, reduced significantly, as a reform, the taxpayer’s consistency costs because of the standardized operation across states. Under the old tax collection structure, the Restaurant Industry was bearing high-cost practices due to the high rate of taxes levied by the authorities in the form of service tax, VAT, etc., clubbed with extra service charges on the bills issued by the restaurants to their customers. Therefore, the paper attempts to explicate the impact of GST on Quick Service Restaurants’ food costs and the quality of services in Delhi NCR. A sample of 100 respondents was selected using the purposive cum convenient sampling technique, and first-hand data were collected on a 5-point Likert scale with the help of a questionnaire. Factor analysis, ANOVA, Independent T-test, and descriptive analysis were used to analyze the collected data and draw inferences. The study finds no adverse impact of GST on respondents’ cost of living and dining. Further, the inflation in the country is also not being pushed up by the reform. After GST’s implementation, the diners felt a slight improvement in QSRs’ quality of goods and services besides being satisfied with the implementation of GST by the government and its dual-mode.

Keywords: ST, QSRs, Diners, Restaurants, Indirect Tax

View PDF