Ahead of the first Union Budget of the Modi 3.0 government, the food services sector has requested industry status and a dedicated ministry to address its unique challenges.
Kabir Suri, President of the National Restaurant Association of India (NRAI) and Director at Azure Hospitality, advocates for a single-window policy for faster restaurant openings, uniform licensing across states, and seamless renewals.
He is hopeful that the industry will receive Input Tax Credit (ITC) on its expenses, a matter already raised with Finance Minister Nirmala Sitharaman, the GST Council’s Rate Rationalisation Committee, and several states.
The NRAI argued that while the 5% GST may seem beneficial, many restaurants paying GST on rentals are incurring losses. They are calling for an option between 5% GST or 12% GST plus ITC to foster business growth.
The industry believes that passing on GST benefits to customers and reducing operational expenses will encourage the opening of new restaurants, thereby creating more jobs and revenue.
The NRAI, describing itself as the second-largest job creator, has also sought government approval for round-the-clock operations for restaurants across India to expand late-night dining options, currently only 3% of total dining out in terms of meal timings.
Source: CNBC TV18
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