Want to work closely with Govt: Restaurant industry body NRAI
Industry body National Restaurant Association of India (NRAI) , which represents close to 6,500 restaurant operators, said on Friday it wants to work with the government of various regulatory issues it has been dealing with over the past 12 months.
Calling out to issues such as the rollback of the input tax credit (ITC), NRAI president Rahul Singh said the industry was hopeful that together with the government, it would resolve pending issues. “During the past 12 months, the restaurant industrywas crippled with issues like GST without ITC, service in open areas, portion controlling and arbitrary stoppage of excise licenses. NRAI wants to work with the Government and authorities as a cohesive unit to promote the restaurant industry,” Singh said, at the association’s AGM.
The GST Council had slashed tax rates on restaurants in November 2017 to 5% from 18%, and rolled back input tax credit, which companies had said impacted profitability and limited their capacity to take price cuts.
Singh said developments such as delivery bikes being included under the ‘non transport category’, the Supreme Court’s decision on Legal Metrology Act, 2009, stating MRP would not apply to packaged commodities served in restaurants, and microbreweries likely to start soon, had brought “immense relief” to the industry.
The restaurant industry, valued at Rs 3,09,110 crore, is the third largest after retail and insurance in the services segment, according to the NRAI India Food ServicesReport 2016.