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Restaurant sector seeks re-introduction of input tax credit, says NRAI

"We would urge government of India to re-introduce ITC for restaurants," Singh said

Press Trust of India  |  New Delhi 

GST, taxes

The restaurant sector is seeking re-introduction of input credit from the in addition to reduction in number of licences required for operating a restaurant, the of (NRAI) said today.

"The restaurant industry has been singled out by removal of the input credit. The very concept of is central to and is in fact the raison dtre of GST, which is to prevent cascading of taxes," NRAI said in a statement.

There are three B2B service industries closely linked with restaurant industry, which are banking, and which post have been allowed on any supply of goods including capital goods, he added.

"We would urge of to re-introduce for restaurants," Singh said.

Highlighting the plight of the sector, Singh said: "It takes over two dozen licences and permissions to be able to serve a sandwich. Rather than serving our customers, most of our time is spent in running around departments."

The restaurant industry is worth Rs 3.52 trillion (Rs 3,52,000 crore) and is expected to grow to Rs 5.52 trillion (Rs 5,52,000 crore) by 2022, he claimed.

"For an industry of this size generating over eight million jobs, we also request introduction of a uniform policy that includes single window clearance and reduction in number of licenses required for operating a restaurant," Singh said.

First Published: Tue, January 16 2018. 16:04 IST