Restaurants in Gujarat remain closed to protest service tax

Almost all 20,000 small and big restaurants remained closed

Most of the over 20,000 restaurants in Gujarat were today shut in protest against newly-levied service tax on air-conditioned eateries.

"The one-day strike call has had overwhelming response... Almost all 20,000 small and big restaurants in Gujarat remained closed in protest of the 4.94 per cent service tax on AC restaurants," said Aswhin Gandhi of Gujarat State Hotel Federation.

"The service tax on AC restaurants was added in the last general budget but it was limited to the restaurants that serve liquor. But in this year, every single AC restaurant has been covered," Gandhi said.