NEW DELHI: If you went out to a restaurant this week, you might have noticed that the taxes in the bill you paid were lesser. The reduction comes after the Goods and Services Tax (GST) council slashed the tax rate for restaurants last week.
To benefit the customers, the tax rate for restaurants was revised to a uniform 5 per cent instead of 12 per cent for non-air conditioned restaurants and 18 per cent for air-conditioned restaurants.
However, it seems that customers of Mc Donald's did not get any benefit with the tax cut. Several customs are accusing the outlet of increasing the prices of eatables after the reduction in GST.
A Twitter user shared the bill as a proof of the same:
@McDonalds.. Can you explain GST revision? Neither Bill is mine bt seems authentic. pic.twitter.com/Mze7K8H7tM
— Aj (@AjayChopra0007) November 15, 2017
Soon, the bill went viral with customers enraged over the price rise.
Classic case of passing it on to the consumer. Why, @mcdonaldsindia ? Even after reducing #GST to 5%, the common man pays the same. #BoycottMcdonalds #notlovinit pic.twitter.com/pGeoJNPhCV
— Shrutika Kalbag Kini (@shrutikakalbag) November 15, 2017
Shame on @McDonalds @mcdonaldsindia is Looting Money from India in Name of #GST#BoyCottMcDonalds in India #SayNoToMCDonalds
Cheater @McDonaldsCorp— Rahul Thakkar __ (@DegreeWaleBabu) November 15, 2017
@mcdonaldsindia this is daylight robbery from your end. Raising prices when taxes go up to increasw your profit. #boycottmcdonalds pic.twitter.com/jgVAJj5qmp
— Pranav Sharma (@pranavsailor) November 15, 2017
How to fool ppl. #MNC style. #Modi ji Kya kar lenge. We thrive on corruption. Changed menu price to match lower #GST. @arunjaitley ji. Consumer is helpless. pic.twitter.com/jWpQ1o3TUh
— Ratan Sharda (@RatanSharda55) November 15, 2017
Yes....let's #boycottmcdonalds and any other who does not passing benefits to consumers
— Dattatraya Bhalerao (@dattabhalerao) November 16, 2017
In its defence, Mc Donald's said that despite the cut in GST, its operating costs have gone up due to removal of input tax credit. The decision to increase the prices, hence, has been because of that. However, it added that customers will not be affected as they will have to pay the same amount as before.
"The Government has brought down GST from 18% to 5%, but there has been a removal of Input Tax Credit. Due to this, our operating costs have gone up. However, keeping customer convenience in mind. we have structured the changes in such a manner that total amount paid by the customer remains the same," McDonald's India tweeted.
The customers were not impressed with the explanation though hitting back at the outlet.
Shame on @mcdonaldsindia & @Subway on increasing price of products after #GST revision.
How come your input cost increased in just a single day. If you don't treat your customers well, they may boycott you.
Just like I am doing the same!#boycottmcdonalds #BoycottSubway— Manik Luthra (@BigManik) November 16, 2017
Will this force McDonald's to reduce its prices or will it stick to its stand remains to be seen.
