Restore Input Tax Credit in Budget: Urged Restaurant Sector

The restaurant industry has urged restoration of Input Tax Credit (ITC) under Goods and Services Taxes (GST) regime. Further, the industry has urged cheaper loans, enhancement in emergency credit scheme and relaxation in the budget 2022.
Currently, the service provided by way of cooking and supply of food, by cloud kitchens/central kitchens are covered under ‘restaurant service’ and attracts 5 percent GST without ITC.

In this regard, Zorawar Kalra, MD of Massive Restaurants, has said that the most important thing we need right now after two years of immense plight is the restoration of input tax credit. As without the restoration of ITC, many restaurants will find it hard to survive in the next 12 months. We also request for the availability of very-low interest working capital loans to help people restart their businesses, as each lockdown requires significant startup capital,” he added.

Further, Rahul Singh, founder of The Beer Cafe, said that Specifically, enhancement of ECLGS (Emergency Credit Line Guarantee Scheme), ABRY (Atmanirbhar Bharat Rojgar Yojana) relief and reinstating ITC on GST will provide impetus to revive.

Priyank Sukhija, CEO of First Fiddle, had shut his outlets in Delhi, barring one, after the government imposed a ban on the dine-in business due to Covid-19 cases. “We spend so much money on building the restaurants. It is high time that the input tax credit is restored. The government is not bothered. There should also be a special loan sanctioned for the industry,” he said.

Source:


Knowledge Source :

Change the Definition of Start-up in Budget 2022; Industry to Government

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