Business News
Eateries may land in soup for profiteering post GST
HIGHLIGHTS
While restaurants are free to alter prices on account of higher costs, most have said the latest hike was the result of the GST Council’s decision to do away with input tax credit while lowering the levy from 18% to 5%.
“If the impact of withdrawal of input tax credit is a sharp increase, they should have also reduced prices by a similar margin when GST was introduced in July. It is a fit case of anti-profiteering action,” a senior finance ministry official told TOI.
The official said the law allowed the government to take suo motu action apart from acting on specific complaints. “We will levy the maximum possible penalty if profiteering is established,” the source, who did not wish to be identified, added.
While other associations have welcomed the move, NRAI members are seen to have moved to challenge the GST Council’s action, setting the stage for a possible escalation in the battle. On Thursday, the Union Cabinet had announced the establishment of an anti-profiteering body and has asked consumers to highlight cases of businesses pocketing gains since the launch of GST .